LEXINGTON, Ky. — The City of Lexington’s strong financial management and a healthy economy are key factors behind the recent decision of the nation’s largest bond rating agencies to continue the city’s strong bond rating.
“This bond rating is the result of a lot of hard work, first to put Lexington’s finances on the right track, then to have the financial discipline to keep them on track, to attract new jobs, and finally to focus on continuous improvement and efficiencies to manage growing costs,” Mayor Jim Gray said.
Just like an individual’s credit rating, the City’s bond rating determines how much it is charged in interest to borrow money. Both rating agencies, Standard & Poors and Moody’s, gave Lexington an AA/Stable long-term rating, which will keep the City’s cost of borrowing relatively low.
“We’re pleased with the rating and the stable outlook and our ability to continue to borrow at historically low interest rates. That will benefit us for the next 20 years,” said Bill O’Mara, the City’s commissioner of Finance.
“We view the city-county’s management as strong,” wrote Standard & Poors in a summary report to the City.
Moody’s report stated the City’s financial operations “remain stable given management’s prudent budgeting practices.”
Both reports cited the strength of the local economy and its diversity.