Moody's maintains City of Mobile's Aa2 credit rating

Jun 27th, 2014

MOBILE, Ala. - Mayor Sandy Stimpson said today that Moody's Investors Service will maintain the City of Mobile's Aa2 credit rating, avoiding a possible downgrade.

"We welcome today's decision by Moody's to confirm the City of Mobile's Aa2 tax rating," Stimpson said. "Today's decision is a validation of our commitment to get control of city spending – an effort that started the day we took office, and continues each day across every department in city government."

Moody's in April placed the city's ratings under review because of a "rapid deterioration" in the city's general fund and financial reserves during fiscal 2012 and 2013. The deterioration occurred in budget years prior to the Stimpson administration taking office on November 4, 2013.

Stimpson and city officials including Councilman Joel Daves, who chairs the city council's Finance Committee, worked closely with Moody's to outline the Administration's plan to improve the city's fiscal health.

"We have worked diligently with Moody's to address their questions over the past 60 days," Stimpson said. "More importantly, we have worked even harder to implement a recovery plan that puts Mobile on sound financial footing going forward."

Moody's identified the city's new management as a key factor in its decision to maintain the current rating. Moody's specifically cited the Stimpson administration for its work to amend the fiscal 2014 budget. The ratings agency said the amended budget included spending cuts and more accurate revenue estimates that should help the city rebuild its financial reserves.

Click here to read a copy of Moody's ratings report for Mobile.

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Contact:

George Talbot
City of Mobile
251-208-7590
george.talbot@cityofmobile.org