BURLINGTON — Ratings agency Moody’s Investors Services has affirmed the city’s A3 credit rating and upgraded its outlook from stable to positive.
Last year, Burlington regained an A rating from Moody’s after a series of downgrades in 2012 that Mayor Miro Weinberger has described as pushing its rating to the edge of junk bond status. The city’s rating is six steps below the highest Moody’s level, Aaa.
Having a good credit rating can save taxpayers money by lowering the city’s cost of borrowing and allowing it to refinance debt at more favorable rates, according to city officials.
“Moody’s improved outlook validates the city’s recent financial achievements and is an indicator of likely future progress,” Weinberger said Wednesday in a statement. “The city’s credit rating is particularly important to taxpayers and ratepayers at this time as we are bonding to implement our major infrastructure plan – we will remain focused on and committed to responsible stewardship of the city’s finances.”
Burlington could further improve its credit rating by continuing to run a surplus and reaching a deal to sell Burlington Telecom, according to the report. The council approved a process Monday for a BT sale.
