Moody’s Investors Service has assigned an Aa2 rating to Snellville’s proposed $4 million taxable revenue bonds for the Cobblestone Project as part of the city’s Towne Center project. The rating indicates the financial obligation is of high quality with a very low credit risk.
The city needed to seek an updated bond rating from Moody’s Investors Service in connection with the Snellville Downtown Development Authority’s issuance of revenue bonds for the purchase of the Cobblestone Office Park at Oak Road and Clower Street.
“The Aa2 issuer rating reflects the city’s moderately-sized, but growing, tax base, very strong reserve and cash positions and manageable long-term liabilities,” according to a Moody’s press release. The general obligation limited tax revenue bonds are rated on parity with the issuer rating because of the city’s full faith and credit pledge to repay the bond’s debt service.
An upgrade to the highest rating of Aaa would result from a tax base expansion and strengthened wealth levels.
The Towne Center project will transform Snellville’s downtown into a livable and walkable downtown district. A governmental agreement with Gwinnett has been approved to build a new library, relocating the Elizabeth Williams branch to the Towne Center. Plans are also underway to build a city market on the Towne Center site.
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