Omaha Keeps Its Triple-A

Omaha will retain its triple-A ratings from Standard & Poor's and Moody's Investors Service as it heads to market next week with $23.8 million of general obligation bonds.

Moody's continues to maintain a negative outlook on the city. It assigned the negative outlook to Omaha and dozens of other triple-A cities earlier this year due to their exposure to the weakened credit profile of the federal government.

Mayor Jim Suttle held a press conference Friday touting the affirmations, which were announced after officials visited the rating agencies two weeks ago.

"We went to Chicago with a positive attitude," Suttle was quoted as saying in local reports. "That's what carried the day."

Omaha estimated the top rating will save $600,000 in interest rate costs for the upcoming borrowing.

In affirming the ratings, analysts praised the city for its diverse tax base, relatively stable economy, and tax increases implemented over the last two years. Challenges include underfunded long-term police and fire pension funds and other post-employment benefit liabilities. Suttle said analysts questioned the city extensively about the liabilities.

The issue is divided into two series: $10.1 million of refunding bonds and $13.7 million of various-purpose new-money debt. The bonds are secured by the city's unlimited taxing authority and will be used to fund capital projects.

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Nebraska
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