City certificates receive three “AAA” ratings

Financial Management Services - August 11, 2006
Contact: Denise Bell, 727-2608

Moody’s Investors Service has assigned a AAA rating - the highest rating possible - to $18 million in certificates of participation the city will offer this month to purchase city equipment.

Fitch Inc. and Standard & Poors rating services have also assigned the certificates a AAA rating, resulting in all three credit rating agencies assigning the certificates the highest level of security. This reduces the amount of interest the city will pay, saving taxpayers’ money. Winston-Salem is the only government entity in North Carolina with AAA-rated certificates of participation.

Moody’s said that the rating is justified by the city’s AAA rating for its general obligation bonds, “which is supported by the city’s favorable long-term credit characteristics including its role as a major economic center for the Piedmont Triad, strong financial operations, and average debt position.”

The certificates will be issued through the North Carolina Municipal Leasing Corporation and are scheduled to be sold on Aug. 22. The certificates will pay variable interest which will be reset on a weekly basis and is exempt from state and federal taxes. The certificates typically sell out on their first day of issue; residents interested in purchasing certificates should contact their stockbroker or their local bank before the sale date.

- end -