The city of Demorest recently announced that Moody’s Investors Service has upgraded the credit rating of the City’s Water & Sewer Enterprise Fund to A3. This marks the third year in a row that Demores’ts credit rating has been upgraded. A press release from the city states the upgrade reflects Moody’s confidence in the city’s “strong financial position, stable cash flows, and disciplined capital management.”
Moody’s noted that Demorest’s growing reserve levels from water and sewer operations played a key role in the upgrade. The rating agency also viewed the city’s moderate long-term leverage and growing water and sewer system size as positive factors.
Demorest City Manager Mark Musselwhite called the news “fantastic.” He credited the dedication of city employees who focus on sound financial planning and cash flow management while working within budgetary constraints. Musselwhite also credited Andrew Tritt of Stifel, a financial services firm in Atlanta, for his guidance and preparation for the annual Moody’s review.
Demorest’s credit rating is determined through an in-depth annual process that includes a conference call with Moody’s analysts and a detailed questionnaire.
