NEW YORK - Moody's Investors Service said it has assigned a Aa3 rating to the city of Daphne, Ala., $ 2.18 million general obligation refunding warrants, series 2010, and upgraded to Aa3 from A1, the rating on approximately $31.08 million in previously issued parity debt.
The warrants are secured by the city's full faith and credit, limited ad valorem tax pledge. Proceeds will advance refund a portion of the city's outstanding Series 1997 Warrants for an estimated net present value savings of 6.47%.
The rating upgrade reflects the city's improved financial position, marked by prudent fiscal management and significant general fund reserves. The Aa3 rating also incorporates a growing tax base and economy, above average wealth levels and a manageable debt burden.
Moody's believes the city of Daphne will continue to experience modest growth over the near term, given its proximity to local employment centers and ample land remaining for future development.
