Moody’s Investors Service recently raised the bond credit rating for the City of Bothell’s debt from A1 to Aa3.

A bond credit rating directly relates to fiscal position; this upgrade in the Bothell rating confirms that the City’s fiscal position has improved. With an upgraded rating, City of Bothell can refinance debt to decrease the associated interest rate and subsequently decrease property tax.

A high bond credit rating signifies to investors that the bond issuer is fiscally sound and therefore the investor’s investment is likely sound.

Conversely, a low bond credit rating signifies to potential investors that the bonds are a “riskier” investment with a higher default probability. For this reason, an entity with a high bond credit rating is rewarded with lower interest rates on their borrowing.

According to Moody’s Investor Services, “The rating and upgrade rating reflects strong growth in the city’s tax base, above average wealth levels, stable financial operations buttressed by ample financial reserves and very low debt levels.”