Edina, Minn., June 4, 2020 – Independent bond-rating agencies Moody’s Investors Service and S&P Global Ratings recently affirmed their high bond rating for the City of Edina’s $5.26 million General Obligation Bonds.
Moody’s Investors Service first gave the Aaa rating to the City in 2000 and S&P issued an AAA rating in 2003. Finding that Edina has a large and affluent tax base, solid financial operations and reserves, the agencies have upheld those ratings since, again reaffirming them earlier this month. Edina is one of just a handful of cities in the state to have both triple-A bond ratings.
Both agencies considered the impacts of the COVID-19 pandemic. S&P’s bond rating report says, “While the scope of economic and financial challenges posed by COVID-19 remains to be seen, given the City’s extremely high reserve levels and lack of reliance on sales or income taxes, we believe Edina is well positioned to navigate the possible impact of the pandemic in the short-to-medium term.”
Moody’s noted the City’s debt and pension as challenges because they are above average of Edina’s national peers. However, the challenge was not significant enough to downgrade Edina’s rating.
“Having both Moody’s and S&P reaffirm our triple-A bond rating is never expected, but always appreciated,” said Finance Director Don Uram. “It really talks about the value of our community and the work of the City Council and staff to maintain that.”
The high bond ratings help ensure that Edina debt is issued with the lowest possible interest expense and cost to the taxpayer.
The Edina City Council June 2 approved the sale of General Obligation Bonds to finance the City’s 2020 street reconstruction and utility improvement projects. Piper Sandler and Company was awarded the sale with an interest rate of just over 1 percent. The City will close on the bond sale June 25.
For more information regarding the City’s bond ratings, contact Uram at 952-826-0414 or duram@EdinaMN.gov.