Changes to City of Gainesville’s Credit Rating

Published on January 30, 2023

GAINESVILLE, Fla. (Jan. 30, 2023) – Moody’s Investors Service has downgraded the City of Gainesville, FL's issuer credit rating to Aa3 from Aa2. Concurrently, Moody's has confirmed without any change the City’s Aa3 non-ad valorem rating, which is applied to the City’s outstanding bonds secured by a covenant to budget and appropriate legally available non-ad valorem revenues. The outlook is stable.

This review was part of a change in Moody’s rating methodology for US Cities and Counties. This now incorporates enterprise fund debt (Gainesville Regional Utilities) among the other rating metrics. In the case of the city, 80 percent of the overall debt is backed by the City’s combined utility. 

The stable outlook reflects the likelihood that the City will continue to maintain a stable financial position given the strong underlying economy and revenue growth.

The issuer rating reflects the City’s ability to repay debt obligations without consideration of any pledge, security, or structural features.

As always, the City is sharply focused on its finances and is continuing to stay on track following the late filing of last year’s 2021 Annual Comprehensive Financial Report. That delay led to a reminder from the Florida Joint Legislative Auditing Committee (JLAC), instructing the City to file by the Dec. 19, 2022 extended deadline, a deadline which the City successfully met.

On Thursday, Feb. 9, Mayor Harvey Ward and staff will travel to Tallahassee to share with JLAC the progress the City has made as it works to complete its next financial report by the June 2023 State of Florida deadline.

For more information, contact City of Gainesville Public Information Officer Rossana Passaniti at 352-393-7842 or passanitir1@gainesvillefl.gov.