KBRA Affirms AA+ Rating for Metropolitan Government of Nashville and Davidson County General Obligation Improvement Bonds
30 Jan 2024 | New York
KBRA affirms the outstanding AA+ rating with a Stable Outlook assigned to 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:
- Metro’s broad and diverse economic base that features governmental, commercial, institutional, healthcare and tourism-based activity, and sizable property tax base.
- Well-maintained financial operations, strengthened through recent operating surpluses and adoption of a more restrictive fund balance policy.
- Adopted financial and debt policies that provide a framework for effective management.
- Presence of contingent liabilities related to debt issued by Metro-controlled authorities.
- Ongoing operating subsidies to the Metro-owned Nashville General Hospital ("NGH").
- Maintenance of financial reserves while addressing identified capital needs.
- Elimination of subsidy to NGH.
- Significant unplanned draws on accumulated reserves.
- Failure to adhere to adopted policies and procedures.
To access rating and relevant documents, click here.