Score Motion: Moody’s confirms Richmond Heights, OH’s GO at A2
International Credit score Analysis – 03 Sep 2020
New York, September 03, 2020 — Moody’s Traders Service has confirmed the score on Metropolis of Richmond Heights, OH’s excellent common obligation limitless tax (GOULT) bonds at A2. The score motion impacts $30,000 in rated debt.
This motion concludes the assessment of the score that we initiated on July 17, 2020 for a scarcity of adequate monetary data. We’ve since obtained and reviewed the town’s audited monetary statements for fiscal 2018.
The A2 GOULT score displays the town’s reasonably sized tax base within the Cleveland (A1 secure) metro, resident incomes slightly below the nationwide median, and really low debt burden. The score additionally considers the town’s stable fund steadiness and liquidity, which can present a buffer towards earnings tax income declines over the subsequent yr. Additionally thought of within the score is the town’s above common pension burden.
We regard the coronavirus outbreak as a social threat beneath our ESG framework, given the substantial implications for public well being and security. The coronavirus disaster just isn’t a key driver for this score motion. We don’t see any materials rapid credit score dangers for the Metropolis of Richmond Heights, OH. Nevertheless, the scenario surrounding coronavirus is quickly evolving and the long term impression will depend upon each the severity and period of the disaster. If our view of the credit score high quality of the town adjustments, we’ll replace the score and/or outlook at the moment.
Outlooks are usually not assigned to native governments with this quantity of debt.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING
– Sustained will increase in fund steadiness and liquidity
– Massive progress in metropolis’s tax base and resident incomes
– Moderation of pension burden
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING
– Sustained decline in obtainable reserves or liquidity
– Massive enhance in debt or pension burdens
The GOULT bonds are secured by the town’s full religion and credit score and pledge to levy limitless advert valorem property taxes.
The Metropolis of Richmond Heights, Ohio is situated 12 miles from downtown Cleveland in Cuyahoga County (Aa2 secure) and has an estimated 10,500 residents. The town supplies police, hearth, road upkeep, parks and recreation, and different common municipal providers.
The principal methodology used on this score was US Native Authorities Basic Obligation Debt printed in July 2020 and obtainable at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBM_1230443. Alternatively, please see the Score Methodologies web page on www.moodys.com for a duplicate of this system.
For additional specification of Moody’s key score assumptions and sensitivity evaluation, see the sections Methodology Assumptions and Sensitivity to Assumptions within the disclosure kind. Moody’s Score Symbols and Definitions may be discovered at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.
For scores issued on a program, collection, class/class of debt or safety this announcement supplies sure regulatory disclosures in relation to every score of a subsequently issued bond or observe of the identical collection, class/class of debt, safety or pursuant to a program for which the scores are derived solely from present scores in accordance with Moody’s score practices. For scores issued on a assist supplier, this announcement supplies sure regulatory disclosures in relation to the credit standing motion on the assist supplier and in relation to every specific credit standing motion for securities that derive their credit score scores from the assist supplier’s credit standing. For provisional scores, this announcement supplies sure regulatory disclosures in relation to the provisional score assigned, and in relation to a definitive score which may be assigned subsequent to the ultimate issuance of the debt, in every case the place the transaction construction and phrases haven’t modified previous to the task of the definitive score in a fashion that may have affected the score. For additional data please see the scores tab on the issuer/entity web page for the respective issuer on www.moodys.com.
Regulatory disclosures contained on this press launch apply to the credit standing and, if relevant, the associated score outlook or score assessment.
Moody’s common ideas for assessing environmental, social and governance (ESG) dangers in our credit score evaluation may be discovered at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569.
Please see www.moodys.com for any updates on adjustments to the lead score analyst and to the Moody’s authorized entity that has issued the score.
Please see the scores tab on the issuer/entity web page on www.moodys.com for added regulatory disclosures for every credit standing.
Daniel Kowalski Lead Analyst Regional PFG Chicago Moody's Traders Service, Inc. 100 N Riverside Plaza Suite 2220 Chicago 60606 US JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653 Eric Harper Further Contact Regional PFG Chicago JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653 Releasing Workplace: Moody's Traders Service, Inc. 250 Greenwich Road New York, NY 10007 U.S.A JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653
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