Sevier County had its bond credit rating upgraded earlier this month by Moody’s Investors Services from A1 to Aa2.
     “The upgrade of Sevier County’s bond rating is a significant milestone for our county, especially during this ongoing national economic recession,” said Sevier County Mayor Larry Waters. “Moody’s continues to believe that the county’s financial position will remain stable and they were especially impressed with our significant reserves in the county’s Debt Service Fund.   
     “It was exactly two years ago when our credit rating was upgraded by Standard & Poor’s rating services to AA – and now we have achieved our highest ratings ever with this upgraded Aa2 rating from Moody’s.”
     In Moody’s last rating update during 2009, they cited, among other things, the county’s solid financial position with a history of conservative budgeting of revenues and expenses, increased reserves, sizable Debt Service Fund reserves, stable tax base and manageable debt burden as all positive factors.
     The new Aa2 rating also incorporates a very low default risk into Moody’s assessment of Sevier County. The county’s tourism base and the Great Smoky Mountains National Park were also cited as positive factors.
     “The upgrade of Sevier County’s bond rating to Aa2 puts it in a new category as it relates to investors both state-wide and throughout the country,” said Joe Ayres, Managing Director of Cumberland Securities, which serves as the county’s investment banker. “Having two AA category credit ratings expands the number and type of investors willing to invest in the county’s bonds and ultimately results in lower interest rates and therefore significant savings for the taxpayers of Sevier County.”

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