City of Yuma Receives Credit Rating Upgrades

The City of Yuma's excise tax revenue bond rating was upgraded from A1 to Aa3 on July 1. The City also received the same upgrade for its Water and Sewer utility system revenue bonds.

The ratings were issued by Moody's Ratings, an independent credit rating agency that evaluates an organization's ability to meet its financial obligations. The upgrade to Aa3 indicates that Moody's views the City as having a strong ability to meet its financial obligations and a low level of credit risk.

The upgrades were based on the City's strong financial position, including a positive trend of healthy reserves, cash levels, responsible fiscal management, and ability to make its debt payments.

"This upgrade is reflective of the Mayor and City Council's dedication and stewardship to maintaining fiscal stability and long-term sustainability," explained Douglas Allen, Chief Financial Officer, "with City administration and executive leadership ensuring department operations are managed within the limits of recurring income."

A higher credit rating can make City bonds more attractive to investors, increase demand, and help the City secure lower interest rates when financing the City's Capital Improvement Program (CIP). This reduces long-term borrowing costs and allows more funding to go toward the projects themselves.

Moody's also assigned a stable outlook to the ratings, meaning the agency expects the City's excise taxes and its Water and Sewer Enterprise to maintain their strong financial positions in years to come.