City of Apple Valley Credit Rating
On March 2, 2021 Standard and Poor’s assigned the City a bond rating of “AAA Stable”, their highest possible rating. On March 2, 2021 Moody’s Investors Services affirmed the City’s “Aaa” bond rating, their highest possible rating.
It is extremely rare for a City to hold two AAA bond ratings. In fact, only 1.2 percent of cities in Minnesota currently enjoy this distinction. Achieving the AAA ratings from each credit rating agency is a significant milestone that has been reached by just 10, out of a total 854, Minnesota cities.
Bond ratings are a reflection of the City’s financial strength and stability. Top bond ratings are earned based on the strength of the economy and fiscal management practices. In the eyes of both rating agencies, Apple Valley rates high in terms of budgetary performance, flexibility, financial liquidity, and debt management.
The Standard & Poor's rating reflects strong management with good financial policies and practices, very strong budgetary flexibility, budgetary performance with operating surpluses, and a very strong debt position.
Moody's indicated their rating reflects above average and growing tax base valuations, strong financial operations supported by ample reserves, healthy wealth levels, and a low level of debt.
The City has continually improved its financial strength over time. Since 2001, Moody’s has progressively upgraded the City’s bond rating four separate times, achieving the "Aaa" Moody's rating in 2010.
With two top bond ratings in hand, the City of Apple Valley will achieve the lowest possible borrowing costs when issuing bonds in the financial marketplace. Low borrowing costs translate into ongoing savings for all city taxpayers.