Strongsville Receives Highest Bond Rating

STRONGSVILLE, OH — The city of Strongsville has earned a Aaa bond rating from Moody's Investor Services, the highest possible rating a municipality can receive.

"The Aaa issuer rating reflects the city's large, affluent tax base, and strong operating fund balance and liquidity supported by conservative fiscal management. Additionally factored is the city's moderate all-in leverage of outstanding debt and post-retirement benefit liabilities," Moody's said in its assessment of the city.

The investment analysis firm was specifically looking at Strongsville's $5.5 million General Obligation (Limited Tax) Traffic Signalization Improvement Bonds. The firm said its assessment also applies to the city's $37.6 million of outstanding GOLT debt.

On the city's website, Strongsville Economic Development Director Brent Painter said the bond rating will encourage economic development in Strongsville.

“They know they’re making an investment in a strong community,” Painter said.

Moody's further said Strongsville's debt rating is "stable."

"The stable outlook is based our expectation that the city's credit quality will be sustained through the coronavirus pandemic based on the city's proactive budgetary management. Although the city's income tax collections have suffered because of the pandemic, the reduction to collections has been offset by nearly $6 million in expenditure cuts. Furthermore, the city has received roughly $2.5 million in CARES Act funding for fiscal 2020 that will offset COVID-related costs, including public safety, which is projected to result in a modest operating surplus for the year," the firm said.