Madison maintains highest bond rating

Moody’s Investor Service has continued Madison’s Aaa bond rating with a stable outlook, according to a statement from the city. The rating is for the $93 million in tax-exempt general obligation bonds and notes for capital projects and $54.8 million of taxable and tax-exempt general obligation refunding bonds and notes that will be issued by the city next week. Moody’s cited a stable and diverse economy, sound financial operations, a history of healthy reserves and cash balances, as well as manageable debt and pension burdens among the city’s strengths. Challenges include strict levy limits that reduce the city’s revenue-raising flexibility for operations, as well as impacts of economic conditions brought on by the COVID-19 pandemic.