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Moody's Investors Service Inc.

Moody's Assigns Aa2 Rating to Loudon County, TN's Proposed $35 Million Rural School Bonds, Series 2025

Strategic Insights

— 1 min read

Moody's Investors Service has assigned a Aa2 rating to Loudon County, TN's proposed $35 million Rural School Bonds, Series 2025, maintaining the county's Aa2 issuer and general obligation unlimited tax (GOULT) ratings. The county will have approximately $87 million in debt outstanding post issuance. The rating reflects solid financial position, conservative budgeting, and prudent fiscal management, with a growing economic base and manageable long-term liabilities.

Key Takeaways:

  • The Aa2 issuer rating reflects a solid financial position, with an available fund balance ratio of 51.4% of annual revenues and a liquidity ratio of 84.7% of annual revenues as of fiscal 2024.
  • The county's economic base is growing, with a full value per capita of $215,961, and resident income is average for the rating category at 110% of the nation.
  • Taxpayer concentration is moderate at approximately 7% of total assessed value, and unemployment is roughly level with state averages at 3.2% as of March 2024.
  • The county's manageable long-term liabilities and conservative debt service payment strategy contribute to the stable rating.
  • The absence of distinction between the Aa2 issuer rating and GOULT rating reflects the county's general obligation full faith and credit pledge.

Statistics:

  • As of fiscal 2024, Loudon County's available fund balance ratio was 51.4% of annual revenues.
  • The county's liquidity ratio was 84.7% of annual revenues as of fiscal 2024.
  • Resident income is 110% of the national average.
  • The county's full value per capita is $215,961.
  • Taxpayer concentration is approximately 7% of total assessed value.
  • Unemployment is roughly 3.2% as of March 2024.
  • The county's long-term liabilities are approximately 246% of annual revenues, including the proposed $35 million Rural School Bonds, Series 2025.

Sources:

  • Moody's Ratings, Moody's Investors Service, "Moody's Assigns Aa2 Rating to Loudon County, TN's Proposed $35 Million Rural School Bonds, Series 2025"
  • US Cities and Counties, Moody's Investors Service, Published July 2024, available at [ratings.moodys.com/rmc-documents/425429](https://ratings.moodys.com/rmc-documents/425429)
  • Rating Methodologies, Moody's Investors Service, available at [ratings.moodys.com](https://ratings.moodys.com)

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