Press Release|Public Finance
KBRA Assigns AAA Rating to City of Dublin (OH) General Obligation (Limited Tax) Various Purpose Improvement and Refunding Bonds, Series 2024
16 Jul 2024 | New York
The AAA long-term rating for the City of Dublin, Ohio’s (the “City” or “Dublin”) General Obligation (Limited Tax) Various Purpose Improvement and Refunding Bonds, Series 2024 (the “Bonds”) reflects the City’s diverse and growing tax base, characterized by strong wealth and employment levels, conservative City budgeting and financial management practices, with ample liquidity and manageable long-term liabilities. The Outlook is Stable.
Key Credit Considerations
The rating was assigned because of the following key credit considerations:
Credit Positives
- Conservative budgetary practices, sound fiscal policies and strong financial performance which support ample reserves and financial flexibility.
- Main source of repayment for the Bonds is income tax receipts, which have benefitted from a vibrant, strong economic base in Dublin with an above average sociodemographic profile, and close proximity to the State’s capital (Columbus, OH).
- A comprehensive five-year capital plan, with significant reinvestment and development to support tax base growth, with a dedicated capital funding source and modest new debt requirements (13% debt funded capex).
Credit Challenges
- Potential for volatility in income tax receipts as affected by the level of economic and employment growth in the city and the uncertain impact of remote work on commuting employees.
- Elevated debt levels per capita, although somewhat moderated by the higher population of nonresident workers, and solidly growing tax base.
Rating Sensitivities
For Upgrade
- No positive rating sensitivities given the highest debt rating level.
For Downgrade
- Significant decline in unrestricted reserves, in particular the Unassigned General Fund Balance relative to General Fund expenditures, to below historic levels.
- Declining trend in income tax receipts and/or material increase in debt requirements that pressure the ad valorem ten-mill property tax limitation.
To access rating and relevant documents, click here.