Nixa, Mo., GOs Upgraded to Aa3 by Moody's

Moody's Investors Service said it has upgraded the city of Nixa, Mo.'s general obligation unlimited tax debt to Aa3 from A1.

Concurrently, Moody's has assigned an A1 rating to the city's $1.34 million refunding certificates of participation, Series 2013. Post-sale, the city will have $2.3 million of general obligation and $1.34 million of Moody's rated lease revenue debt outstanding.

The upgrade to the Aa3 general obligation rating is based on the city's moderately sized tax base favorably located within the Springfield, Mo., (GO rated Aa1) metro area; continued full valuation growth despite a broader challenged economic environment; sound financial operations marked by sizable reserve levels; and a manageable debt profile.

The 2013 certificates are secured by basic rental payments defined under the lease agreement, which are annually appropriated from any legally available funds. Proceeds will be used to refund the Series 2005 certificates for an estimated net present value savings.

The A1 rating on the current certificates reflects the annual risk of non-appropriation; the nature of the pledged asset, which we view as essential to municipal operations; and the credit factors reflected in the city's Aa3 general obligation rating.

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