Standard & Poor's Tuesday revised its outlook to stable from negative on the AA general obligation rating of Nashville and Davidson County Metropolitan Government, affirming its AA on $1.68 billion of outstanding GOs.
"Standard & Poor's believes management will still face challenges maintaining its structurally balanced budgets due mainly to its financial support of the affiliated hospital authority," analyst Theodore Chapman said. "In Standard & Poor's opinion, however, actions taken by management since 2008 indicate the likelihood of financial stability."
A property tax rate cap instituted by voters in 2006 freezing the operating tax rate, and requiring future increases to be approved by voters, constrains the rating, Chapman said.
