Fire District improves credit rating
May 12, 2016
The Grand Lake Fire Protection District recently saw their credit rating increased by Moody's Investors Service, the international bond credit rating agency, from A1 to Aa3.
With the new bond credit designation Grand Lake Fire's investment bonds moved into a new category of investment grade for long-term investments. The department's bonds are now rated high quality and very low credit risk. The department's previous bond rating, A1, meant long-term bond investments with the department's were viewed as upper-medium grade and low credit risk.
According to a press release from Grand Lake Fire regarding the new credit rating Moody's tracks debt for over 21,000 public finance issuers in 120 countries providing credit ratings and analysis that contributes to company transparency for investors.
"To have our financial practices and consistent, positive results over the last decade be recognized by an international rating bureau such as Moody's is remarkable," stated Grand Lake Fire Chief Mike Long. "It's really something we are proud of."
In the press release from Grand Lake Fire the department quotes comments from the official Moody's report stating, "strong governance is demonstrated by the district's long history of surplus operations. The upgrade to Aa3 primarily reflects the trend of surplus operations resulting in reserves that can cover nearly three years of general operations. The district's liquidity is very strong."
Chief Long expressed thanks to current and former members of the Grand Lake Fire Protection District's Board of Directors for, "supporting a successful business model whose strength and sustainability has now been formally recognized by one of the biggest credit rating names in the global capital markets."
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The last time Grand Lake Fire's bond credit rating was changed by Moody's was over 15 years ago when the bond was initially put out.