Credit Ratings for the City of Lake Oswego General Obligation Bonds
Ratings Scale (highest to lowest)
Moody's: Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C...
Standard & Poor's: AAA, AA+, AA, A+, A, BBB, BB+, BB, B+, B, CCC...
Fitch: same scale as Standard & Poor's
City’s Strong Financial Condition Affirmed
The City of Lake Oswego’s general obligation bond ratings have been affirmed by Moody’s Investors Service at “Aaa” and by Standard & Poor’s at “AAA”. In addition, the rating agencies affirmed “Aaa” and “AAA” ratings on the City’s full faith and credit obligations. The City is proud that it once again has achieved this strong affirmation of its financial standing and that it can continue to borrow money for infrastructure investments with the lowest possible interest rates.
“Aaa” and “AAA” are the highest ratings a government can receive from Moody’s and Standard & Poor’s. It means that these independent agencies, which rate municipalities across the nation, have affirmed the strength of the City’s financial position. Moody’s notes the City’s “well-managed financial operations and a manageable debt profile” in its report. Standard & Poor’s states in its report that “Lake Oswego’s management practices are considered ‘strong’ under Standard & Poor’s financial management assessment (FMA) methodology, indicating practices are strong, well embedded, and likely sustainable.”
In maintaining the highest level of financial condition, Lake Oswego is regarded as a community with among the strongest financial conditions within the municipal realm. The high ratings allow the bonds to have lower interest rates. This translates into lower taxes and fees for Lake Oswego residents than those in other cities who are borrowing to make similar investments in their vital infrastructure.
The ratings reflect both rating agencies opinions of the City’s strong financial condition. The ratings were received after the rating agencies met with City elected officials and staff. The City takes an active role in maintaining its strong financial standing. Rating agencies are regularly advised of our financial condition and the City Manager and City Council conservatively manage the City’s funds and protect the City's overall reserve levels.