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Bond Rating Goes Up In Tullahoma

Tullahoma has received another Aa2 bond rating from New York-based Moody’s Investors Service Inc., keeping the city at the forefront among communities its size with good credit. Sue Wilson, city finance director, said that Tullahoma had refinanced some of its debt several years ago to capitalize on better interest rates to save money and Moody’s had upgraded the city’s standing from an A1 rating to Aa2 in 2010. Moody’s said the rating could go down if the tax base and wealth levels were decreased, reducing reserve funds and increasing the debt burden. When the city decided to refinance some of its debt in July, the main goal was to reduce a major spike in its debt obligations by moving toward refinancing a 2002 bond issue that could save a $1 million payment increase in the 2018 fiscal year.