Normal really has a AAA credit rating?

By: Diane Benjamin

https://onlinelibrary.wiley.com/doi/pdf/10.1111/1468-0416.00029

Fitch does have Normal at AAA, did Normal pay to get that rating?

Moody’s doesn’t have Normal at AAA:

https://finance.yahoo.com/news/normal-town-il-moodys-assigns-230707753.html

This story is based on the $2 million debt Normal recently refinanced instead of paying it off.

QUOTE:

RATING OUTLOOK The stable outlook incorporates our expectation that the town’s financial position will remain robust and that long-term leverage will remain above average but not grow materially. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING-Material tax base growth and improvement of resident income indices-Moderation of long-term leverage. FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING-Weakening of operating reserves or liquidity-Growth in long-term leverage. LEGAL SECURITY: The town’s GOULT debt including the current issuance, is secured by the town’s full faith and credit pledge and a dedicated property tax levy unlimited as to rate or amount.

Congrats Normal! The Town’s ability to tax you out of your house is why they have a high credit rating.

Re-elect any incumbents? Why?

Read the story, it claims ISU’s credit rating is Baa2.

Now you know the truth about their AAA credit rating.

4 thoughts on “Normal really has a AAA credit rating?

  1. The title should be “Normal purchased their AAA rating.”

    No doubt this was done to give Koos and his ass-kiss incumbents something to campaign about. Now they will look stupid bragging about the AAA score they purchased.

    Liked by 2 people

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