AAA/Aaa ratings reflect strong financial management and diverse revenue base supporting critical regional infrastructure
.jpg.aspx?lang=en-US&width=350&height=233 "High bond ratings lower the interest cost on bonds the Met Council issues for construction projects, saving taxpayer dollars.")
Two of the nation’s leading credit rating services have once again assigned their highest possible ratings to the Metropolitan Council, continuing an unbroken streak that began in 1989.
Moody’s Investor Service awarded its Aaa rating while S&P Global Ratings assigned its AAA rating in preparation for the Met Council’s General Obligation bond sale. These top-tier ratings are reserved for the most creditworthy entities nationwide, placing the Met Council among an elite group of municipal issuers.
The Met Council issues bonds primarily to fund capital investments in the regional transit system, wastewater services, and regional parks that serve the metropolitan area. Both rating agencies highlighted the organization’s strong liquidity position, diversified revenue streams, and disciplined financial management as key factors supporting the premium ratings.
“Met Council bonds offer investors a reliable, tax-exempt, low-risk investment,” said Met Council Chief Financial Officer Ned Smith. “These exceptional ratings allow us to borrow at the lowest possible interest rates, which directly reduces costs for taxpayers and enables us to deliver better services and infrastructure for the region.”
The sustained AAA/Aaa ratings provide tangible benefits by minimizing borrowing costs for major infrastructure projects that support the region’s residents and growing economy.
Comments from Moody’s
“The stable outlook reflects the expectation that the Council’s financial position will remain very strong, supported by its relatively low reliance on revenue from passenger fares, an influx of federal revenue in recent years, and the passage of a new sales tax for the system.”
Comments from SP Global Ratings
“The AAA rating reflects the Council’s very large and growing economic base that covers the Minneapolis-Saint Paul metropolitan area with strong resident incomes approaching 140% of the U.S. average and a growing population.”