ATHENS-The City of Athens is in a strong financial position that will “remain resilient despite capital needs driven by a
growing population,” according to Moody’s Ratings.
Moody’s notified the City of Athens this week that it upgraded its issuer and general obligation limited tax ratings
from Aa3 to Aa2. The report noted three credit strengths:
Strong and improved reserves and liquidity
Robust economic growth
Manageable leverage
The Aa2 rating reflects the city’s “strong reserves that continue to equate to a historically high 42 percent
revenue,” according to Moody’s. The report attributed this to the rapidly expanding economy as part of the high
growth in the Huntsville metropolitan area.
The report further stated, “The city benefits from a lower housing cost when compared to other parts of the
region. Management reports that there are currently 4,400 new homes and several big box retail outlets under
construction. The city also continues to host a large industrial presence…the sizable commercial presence,
alongside the city’s growing taxable base, has led to a strong full value per capita of $150,000 (as of 2024).”
Mayor Ronnie Marks said this rating benefits not only the City of Athens but also Athens City Schools, which
rely on the City to serve as the school system’s finance agent when borrowing money for capital projects, such
as new schools.
“This speaks well of our efforts to provide conservative budgets to the City Council each year, to grow our sales
tax base and job opportunities and to look for return on investment with retail projects,” Marks said.
In addition, Moody’s upgraded Athens Electric’s revenue rating from Aa3 to Aa2, and affirmed Athens Water
Services as an A1 rating, both with stable outlooks. Moody’s said the upgrade for Electric “reflects its low
leverage, growing system size and limited additional capital needs despite the economic and population
expansion within its service area.”
Blair Davis, Athens Utilities Manager, said, “By maintaining a high-quality rating, Athens Utilities will be afforded
lower interest rates for funding future capital improvement projects, which in turn helps us to supply utility
services at the lowest possible rates.”
In 2024, Standard and Poor’s increased its City of Athens rating from AA- to AA. The S&P report stated, “The
upgrade reflects an expanding, strong local economy in one of the fastest-growing regions in the state combined
with conservative budgetary assumptions and long-term planning that allows Athens to maintain consistent
budgetary performance and very strong reserves.”
tax base and job opportunities and to look for return on investment with retail projects,” Marks –
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said.
In addition, Moody’s upgraded Athens Electric’s revenue rating from Aa3 to Aa2, and affirmed Athens Water
Services as an A1 rating, both with stable outlooks. Moody’s said the upgrade for Electric “reflects its low
leverage, growing system size and limited additional capital needs despite the economic and population
expansion within its service area.”
Blair Davis, Athens Utilities Manager, said, “By maintaining a high-quality rating, Athens Utilities will be afforded
lower interest rates for funding future capital improvement projects, which in turn helps us to supply utility
services at the lowest possible rates.”
In 2024, Standard and Poor’s increased its City of Athens rating from AA- to AA. The S&P report stated, “The
upgrade reflects an expanding, strong local economy in one of the fastest-growing regions in the state combined
with conservative budgetary assumptions and long-term planning that allows Athens to maintain consistent
budgetary performance and very strong reserves.”
