Close to Target
City Bond Rating
Finance

Metric Definition

The bond or credit rating given by credit rating agencies (S&P/Moody's) to corporations and governments based on their ability to pay debt. AAA is considered Extremely Strong/Highest; AA is considered Very Strong/High; A is considered Strong; BBB is considered Adequate. All of these ratings are considered investment grade; anything less is considered non-investment grade or speculative.

Target Definition

The “Target” is equal to or greater than AA+ with S&P or equal to or greater than Aa1 with Moody’s; “Close to Target” is equal to or greater than AA with S&P or equal to or greater than Aa2 for Moody’s; anything less “Needs Improvement.”

Organizational Effect

The City of Goldsboro is a borrowing agency when issuing bonds for projects; when the city maintains a trustworthy bond rating, the total cost of capital decreases, allowing the city to increase the cost effectiveness of significant projects. On August 13, 2020, the City's Aa2 Moody's rating was withdrawn due to a lack of sufficient financial information (late audits). The S&P AA rating remains in effect. The AA+/Aa1 goal signifies the need to increase revenues and cash reserves for future investments to sustain and/or grow city government services. 

Target Data

The Finance Department defines the targets and tracks the required information needed to receive a bond rating from rating agencies. The City is currently rated by Standard and Poor's (S&P).

Significance

The city must maintain a "high quality" rating to be evaluated as a low-risk borrower. By upkeeping the city's reputation as a "low-risk" borrower, the city can save money when completing projects due to lower interest payments, thus bringing down the total debt burden on citizens. Maintaining a very strong bond rating is crucial to the city's financial stability and growth.

Chart

Chart: This chart depicts the city's bond rating from the two main bond rating agencies that the city reports to. 

Reporting  Agency

 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

FY2022

 FY2023 Target
S&P AA- AA- AA- AA- AA- AA- AA AA

AA

 AA AA+
Moody Aa2 Aa2 Aa2 Aa2 Aa2 Aa2

Aa2

N/A

 N/A N/A Aa1