New York, January 15, 2021 -- Moody's Investors Service has assigned a Aa1 rating to the city of Grove City, OH's $6.5 million Capital Facilities Bonds, Series 2021. We maintain an Aa1 issuer rating and Aa1 on previously issued general obligation limited tax (GOLT) debt. The ratings apply to approximately $37.2 million in debt.
The Aa1 issuer and limited tax ratings reflect Grove City's moderately sized tax base, strong financial position and economic stability derived from its nexus as a suburb of the City of Columbus (Aaa stable). The rating also incorporates the city's moderate debt burden and above average pension liability.
The absence of a distinction between the Aa1 rating on the city's GOLT debt and the city's Aa1 issuer rating is based on the city's full faith and credit pledge. The city also has the flexibility to increase its charter millage to pay debt service on limited tax bonds.
Outlooks are not typically assigned to local governments with this amount of debt.
The basic security for payment of the bonds is the requirement that the city levy ad valorem property taxes within the ten-mill limitation imposed by Ohio law and within the four-mill city charter limitation to pay debt charges on the Bonds. The bonds are also secured by the city's full faith and credit pledge.
Proceeds will be used to refund the city's Capital Facilities Notes, Series 2020.
The City of Grove City is located in Franklin County and is approximately 7 miles southwest of Columbus. The city's population is an estimated 40,797.
The principal methodology used in this rating was US Local Government General Obligation Debt published in July 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBM_1230443. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.
For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.
Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1243406.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.
Amy Marks Lead Analyst Regional PFG Chicago Moody's Investors Service, Inc. 100 N Riverside Plaza Suite 2220 Chicago 60606 US JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Roger Brown Additional Contact Regional PFG Dallas JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653
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