Credit Rating
Bonds that are traded in the open market are rated by one or more rating agencies. Ratings are forward looking opinions about credit risk. The agencies review the strength of the pledged revenue that will repay the debt, the financial strength of the funds involved in the debt issuance, and a variety of factors about the city including economic diversity, financial performance, existing debt burden, and financial management practices.
Rating Agency Scale
Based upon this information, the agency determines a risk level for the bonds and assigns it a designation from a scale with AAA as the prime quality, AA as high grade, etc. The city has used both Moody’s Investors Service and Standard and Poors. Top tier scales are shown in the following table. The city’s bonds and respective ratings are disclosed below the table.
| Bond Type | Moody's Investors Service | Standard & Poors |
|---|---|---|
| Prime | Aaa | AAA |
| High Grade | Aa1, Aa2, Aa3 | AA+, AA, AA- |
| Upper Medium Grade | A1, A2, A3 | A+, A, A- |
| Lower Medium Grade | Baa1, Baa2, Baa3 | BBB+, BBB, BB- |
City Bonds Outstanding and Ratings
| Wilsonville Bonds | Purpose | Issue Date | Maturity Date | Rating | CUSIP |
|---|---|---|---|---|---|
| General Obligation | Library | July 2001 | January 2016 | Aa2 | 972478 |
| Water Revenue Refunding | Water Plant | March 2006 | June 2020 | Aa3 | 972480 |
| Oregon Local Governments FF&C | Water Refunding | April 2006 | December 2015 | Aa2 | 68608D |
| Full Faith and Credit | Sewer Plant | December 2011 | June 2029 | AA+, Aa3 | 972478 |
Ratings are current as of January 2012 and reflect underlying credit not enhanced through insurance. CUSIP is a unique identifier for the issuer of a bond.
Additional Information
Ratings are continually reviewed and subject to change, both increase and decrease. Both the city’s general obligation and water revenue bonds were upgraded in May 2010 to the values shown above. The city is required to promptly disclose any changes to the Municipal Securities Rulemaking Board (MSRB) webpage via Electronic Municipal Market Access (EMMA).
