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Bond Rating Optimization

The bond ratings system is confusing, at best.  You know that you need to carry at least a 90-day General Fund reserve and manage your annual budget well.  Beyond that, do you know how Moody's, S&P, and Fitch are using your demographic, economic, fiscal, and financial information to arrive at the bond rating that ultimately determines what interest rate your community pays for its General Obligation Bonds? 


Over the course of seven years as a City Manager, Jason Gray helped different communities increase bond ratings several times, including leading McKinney, Texas to a top-rated AAA rating during his tenure.  All of the  ratings agencies use a combination of quantitative​ and qualitative analysis to determine your ratings.  We have worked with the ratings agencies to fully understand what their analysts are looking for and have developed a methodology to give you the insight needed to put your community's best foot forward. 

Our Bond Rating Assessment Service provides you a detailed report on what the agencies are looking at, what their red flags are, and we provide insight and advice on how to best communicate your community's strengths tothe analysts to ensure that you get the highest rating possible given your underlying financials.  Then, we help prepare you and your financial team for the ratings calls, showing you exactly what to highlight as you represent the community. 

The graphic to the right is from one of our clients who is currently rated Aa1 by Moody's and would like to get over the threshold to a Aaa​ rating.  The Scorecard rating is not a simple calculator, but it is based on the roughly dozen factors that go into the quantitative portion of your rating. In this case, our 25 page report is giving our client a strategic path to an eventual upgrade.

JDGray Group Consultants
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