New York, July 02, 2025 -- Moody's Ratings (Moody's) has assigned a Aa3 rating to Bedford County’s proposed $5.0 million General Obligation Bonds, Series 2025. Moody maintains the county's Aa3 issuer and general obligation unlimited tax (GOULT) ratings. Post issuance, the county will have approximately $120 million in debt outstanding.
RATINGS RATIONALE
The Aa3 issuer rating reflects a healthy financial position, a result of conservative budgeting and prudent fiscal management. As of fiscal 2024, the county's available fund balance ratio was 57.6% of annual revenues and their liquidity ratio was 120.9% of annual revenues. The primary reason for the sizeable difference between fund balance and liquidity is a substantial amount of restricted monies within the operating funds. Management projects fiscal 2025 will end with a modest decline in total General Fund balance but unassigned General Fund reserves will remain similar to the previous year.
The rating also takes into consideration a growing economic base in central Tennessee. Resident income is below average for the rating category at 93% of the nation and the county's full value per capita is $103,167. Taxpayer concentration is moderate at approximately eight percent of total assessed value and unemployment is roughly level with state averages at 2.6% as of April 2024.
The rating further reflects the county's moderately elevated long-term liabilities, which as of fiscal 2024 were 211% of annual revenues. When taking into consideration the current debt issuance, long-term liabilities increase to approximately 219% of annual revenues which is above-average for the Aa rating category. Regardless, county liabilities should remain manageable given the fact that the economic base continues to experience growth.
More on this report in the 7/10 edition of the Times-Gazette.
