Mobile won two rating upgrades just ahead of next week’s planned sale of nearly $60 million of general obligation warrants, which are similar to bonds.
Moody’s Investors Service on Monday assigned an A1 rating to the city’s upcoming issue, an upgrade from A2. Moody’s also assigned the higher rating to Mobile’s $185.91 million of previously issued parity debt.
Standard & Poor’s on Tuesday raised its underlying rating on Mobile’s GO debt to AA-minus from A-plus and assigned the higher rating to next week’s sale.
Both rating agencies said the upgrades reflected the city’s improved financial position, solid reserves, growing tax base, and moderate debt burden with limited plans for future bond issuance.
Next week’s bond sale proceeds will be used to finance various projects, including infrastructure improvements and an emergency radio system.
Fitch Ratings does not give Mobile’s GO warrants an underlying rating.