City of Des Moines gets AAA debt rating
Thursday, July 25, 2013 10:57 AM
Standard & Poor's assigned its highest possible rating, AAA, to the city of Des Moines in anticipation of new debt to be issued today, the city said in a release. The city annually issues debt to pay for major infrastructure projects and equipment costs that are approved within its capital improvement program. Credit ratings reflect the level of certainty for which investors can expect that debt repayments will be made as scheduled. In similar fashion, the city's bond rating with Moody's was affirmed at Aa1. "This outstanding AAA credit rating confirms that we continue to manage our resources superbly and that we have demonstrated the political will to make the hard budgetary decisions necessary when fiscal challenges arise," City Manager Rick Clark said. Des Moines' high ratings are in sharp contrast with Detroit, which S&P last week downgraded to C from a CC rating when that city filed a bankruptcy petition.