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KBRA Affirms AA+ Rating for The Metropolitan Government of Nashville and Davidson County, (TN ) General Obligation Improvement Bonds

1 Oct 2025   |   New York

Contacts

KBRA affirms the outstanding AA+ rating with a Stable Outlook for the The Metropolitan Government of Nashville and Davidson County, TN ("Metro") General Obligation Improvement Bonds.

Key Credit Considerations

The rating was affirmed because of the following key credit considerations:

Credit Positives

  • Broad and diverse economy with a sizable and growing property tax base.
  • Well-maintained financial operations, supported by sound financial and debt policies and strong reserves.
  • Favorable socioeconomic and demographic trends characterized by strong income and employment growth.

Credit Challenges

  • Managing ongoing growth related capital needs.
  • Presence of contingent liabilities related to debt issued by Metro-controlled authorities.
  • Moderate ongoing operating subsidies provided to Nashville General Hospital.

Rating Sensitivities

For Upgrade

  • Maintenance of financial reserves while concurrently addressing identified capital needs.
  • Elimination of subsidy to Nashville General Hospital, which KBRA presently views as unlikely.

For Downgrade

  • Significant unplanned draws on accumulated reserves.
  • Failure to adhere to adopted policies and procedures.

To access ratings and relevant documents, click here.

Methodologies

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1011609