On November 27, 2024, two of the nation's premier credit rating agencies bestowed their highest scores upon the City of Huntsville. This remarkable achievement marks the 16th consecutive year that the City has received this top rating under the leadership of Mayor Tommy Battle.

Credit Rating Agencies' Assessments

Moody’s Investors Service assigned Huntsville a credit rating of “Aaa,” while Standard & Poor’s Rating Services awarded a rating of “AAA.” These ratings stand as the pinnacle that a city can attain, with less than 1% of the over 22,000 cities and counties across the country achieving such a high rating.The significance of these ratings cannot be overstated. They serve as a testament to the City's financial prudence and its ability to manage public funds effectively. Mayor Tommy Battle emphasized, “These ratings are outstanding news for the City and Huntsville residents. It confirms that the City is a good steward of the public’s money and underscores the City’s economic strength. It’s also a reflection of the hard work by our Finance Department, led by Director Penny Smith, and all of our department heads to ensure we are making wise financial decisions.”

Implications of Top Credit Score

The top credit score bestowed upon Huntsville allows the City to leverage the lowest possible interest rates. This, in turn, leads to substantial savings. For the upcoming sales, it is estimated that Huntsville will save more than $1.9 million in interest compared to an AA rating and more than $4.8 million in interest over an A rating.Finance Director Penny Smith further elaborated, “These credit ratings, while affirming the City’s sound financial strategies, also result in significant savings. While the perfect credit ratings continue to boost the City’s financial outlook, there are tangible benefits as well.”

Debt Issuance Plans

The credit ratings come at a crucial time as the City is set to issue debt in early December and early February. The December 5 issuance is valued at approximately $92.8 million. Of this amount, about $77.4 million will be allocated towards public Parks and Recreation facilities, enhancing the recreational opportunities for residents. Additionally, $15.4 million will be used to pay off Taxable Limited Obligation Revenue Warrants issued for Redstone Gateway development infrastructure.In February, the issuance is estimated to be valued at about $200 - $225 million. This will be utilized for various purposes such as school construction and renovation, refunding for interest savings, Von Braun Center renovations, and the final construction of City Hall. The formal offering statement will be finalized in January, ensuring a well-planned and organized debt issuance process.The City's ability to secure these top credit ratings and plan for debt issuance strategically positions it for continued growth and development. It showcases the City's commitment to financial stability and its ability to meet its obligations while providing essential services and infrastructure improvements.