From staff reports
In its “Annual Comment” regarding the City of Beaufort’s financial profile, Moody’s Investors Service said that the City’s Aa2 rating reflects a “very strong credit position” and that Moody’s does not see any material credit risk for Beaufort as a result of the coronavirus outbreak.
“Notable credit factors include a robust financial position, healthy tax base and sound wealth and income profile. The rating also reflects a light debt burden,” Moody’s said.
Moody’s noted that the City’s cash balance as a percent of operating revenues (44.8 percent) is “consistent with the U.S. median.” It also said that the city has a “very strong economy and tax base.”
In defining its ratings, Moody’s says that “Aa” signifies that the fixed income obligation is “judged to be of high quality and are subject to very low credit risk” and 2 places the obligation in the middle of the range of that rating class. Beaufort’s rating is above the median rating of Aa3 for U.S. cities, according to Moody’s.
“We’re pleased that Moody’s recognizes that Beaufort maintains a strong and prudential financial position,” said Finance Director Kathy Todd. “We do not take on unnecessary debt, and this opinion reflects that.”
Moody’s report can be viewed at http://www.cityofbeaufort.org/DocumentCenter/View/6480/Moodys_2021.