Farmington, Minnesota

Photo by Jason Jensen

City's Bond Rating Upgraded to AA+

City's Bond Rating Upgraded to AA+
Posted on 05/21/2019
City's Bond Rating Upgraded to AA+The City of Farmington’s bond rating has been upgraded to AA+. 

“In 2010, the city switched from Moody’s Investor Services to Standard & Poor’s Global Ratings and the city was rated a AA-,” said Finance Director Teah Malecha. “In 2015, the city was upgraded to a AA and then with the recent issuance, we are upgraded to a AA+.”

The new rating may result in a lower future borrowing cost for the city. The highest credit rating is a AAA, which is one step up from the AA+.  

“The biggest advantage is that it shows the work that the council has done over the last 10 years in setting financial plans and accurate budgets, and following them,” said City Administrator David McKnight. “The work that you’re doing is paying off. This is a huge accomplishment and the city needs to celebrate it. The residents need to know that it’s an accomplishment for them as well.”

Standard & Poor's Global Ratings rates the city's credit risk. In early April, in conjunction with the planned issuance of the General Obligation Series 2019A bonds for the Westview Area street reconstruction and water tower refurbishment, Standard and Poor's reviewed the city's economy, management and financial measures. They concluded their review by upgrading the city's credit rating from AA to AA+. The rating upgrade recognizes the collective work over the past several years of the city council and staff. It’s a very important milestone for the city.

 “It’s really easy for us to come up here and set up policy – it’s city staff that keeps within the goals and puts in all the hard work,” said Mayor Todd Larson. “We do the easy work up here so thank you to city staff.”

For more information about the city’s bond rating, contact Teah Malecha at TMalecha@FarmingtonMN.gov.