Rating agencies reaffirm Brookhaven’s “Double Triple-A” credit rating
Standard & Poor’s and Moody’s give Brookhaven highest grade
Brookhaven, GA, Feb. 16, 2023 – Standard & Poor’s (S&P) and Moody’s Investor Services (Moody’s) have again graded the financial health, management and fiscal policies of the City of Brookhaven, each giving the City the highest rating: S&P rated Brookhaven AAA, Moody’s awarded the City Aaa.
These ratings, which apply to $88.5 million in Series 2023A bonds issued by Brookhaven Urban Redevelopment Agency, reaffirm the highest ratings originally received in July 2018 for the bond for the construction of the Peachtree Creek Greenway, and reaffirmed in 2019 for Park Bond improvements. Funding for the latest bond issuance is secured by property located within the City's Special Service District (SSD), which encompasses approximately 40% of the total tax base and only consists of commercial property.
At its meeting on Feb. 15, the Brookhaven Urban Redevelopment Agency approved a supplemental resolution to approve the terms of the Series 2023A bonds.
Bond proceeds will be used to finance a variety of projects across the SSD including a new City Hall, road, bridge, streetscape improvements, and multi-use paths/sidewalks.
“A local government is reflective of the residents it represents, and Brookhaven residents want and deserve quality,” said Mayor John Ernst. “The bonds will empower us to improve the quality of our infrastructure and construct an iconic City Hall, and the ratings on the bonds from Moody’s and S&P are a powerful endorsement of the quality of our fiscal stewardship.”
“As the CFO for Brookhaven, my mission is to continue the implementation of strong financial policies and controls. The triple-A ratings from S&P and Moody’s allow us to get the best interest rates possible, which gives Brookhaven the biggest bang for the buck,” said Brookhaven CFO Steven Chapman.
When describing their evaluation in their Feb. 2 report, Moody’s said the rating “Reflects the city's exceptionally strong financial position that is supported by a rapidly growing and affluent tax base, competitive location within the dynamic Atlanta (Aa1 stable) metropolitan area, and prudent budget management. These strengths are expected to carry forward, helping offset the city's above-median long-term liabilities ratio and fixed costs ratio.”
In its Feb. 3 report, S&P said, “The 'AAA' rating reflects the underlying strength of the city's solid wealth and income levels and a growing tax base that is underpinned by keen partnerships it has leveraged with notable institutions such as Emory University and Children's Hospital of Atlanta. Additionally, the city's judicious financial management practices have facilitated a robust financial profile.”
S&P noted key credit strengths, regarding Brookhaven:
- Wealthy residential economy, with access to a broad and diverse metropolitan statistical area (MSA);
- Formalized and well-embedded policies and practices, supported by a very strong institutional framework; and
- Strong trend of surplus operations and available reserve levels over 30% of operational expenditures.
"With financing in place, we can now move full steam ahead on all of these projects,” said Mayor Ernst.
