Credit Ratings for the City of Lake Oswego General Obligation Bonds

Ratings Scale (highest to lowest)

• Moody's: Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C...
• Standard & Poor's: AAA, AA+, AA, A+, A, BBB, BB+, BB, B+, B, CCC...
• Fitch: same scale as Standard & Poor's

City’s Strong Financial Condition Affirmed – Again

The City’s general obligation bond ratings have been affirmed by Moody’s Investors Service at “Aaa” and by Standard & Poor’s at “AAA”. In addition, the rating agencies affirmed the existing “Aa1” and “AAA” ratings on the City’s full faith and credit obligations, a new series of which were sold on September 21, 2010 to pay for the remainder of the Lake Oswego Interceptor Sewer (LOIS) project. The City is proud that it once again has achieved this strong affirmation of its financial standing and that it can continue to borrow money for infrastructure investments with the lowest possible interest rates.

“Aaa” and “AAA” are the highest ratings a government can receive from Moody’s and Standard & Poor’s. It means that these independent agencies, which rate municipalities across the nation, have affirmed the strength of the city’s financial position. Moody’s notes the city’s “well-managed financial operations and a manageable debt profile” in its recent report. Standard & Poor’s states in its report that “Lake Oswego’s management practices are considered ‘strong’ under Standard & Poor’s financial management assessment (FMA) methodology, indicating practices are strong, well embedded, and likely sustainable.”

In maintaining the highest level of financial condition, Lake Oswego is regarded as a community with among the strongest financial conditions within the municipal realm. The high ratings allow the bonds to have lower interest rates. This translates into lower taxes and fees for Lake Oswego residents than those in other cities who are borrowing to make similar investments in their vital infrastructure.

The ratings reflect both rating agencies opinions of the City’s strong financial condition. The ratings were received after the rating agencies came to Lake Oswego to meet with City elected officials and staff. In the course of their visits they toured existing and planned infrastructure projects, were given presentations on the City’s approach to project management, and reviewed the City’s financial policies and finances. The City takes an active role in maintaining its strong financial standing. Rating agencies are regularly advised of our financial condition and the City Manager and City Council conservatively manage the City’s funds and protect the City's overall reserve levels.

Review Moody's rating report for Lake Oswego.
Review Standard & Poor's rating report for Lake Oswego.