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<p><strong>From staff reports</strong></p>
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<p>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.</p>
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<p>“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.</p>
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<p>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.”</p>
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<p>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.</p>
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<p>“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.”</p>
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<p>Moody’s report can be viewed at http://www.cityofbeaufort.org/DocumentCenter/View/6480/Moodys_2021.</p>
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