NEWS

DAVIDSON, NC – In advance of the issuance of $5.1M of voter approved G.O.(General Obligation) Bond debt in November 2023, the Town requested updated bond ratings from two major agencies, Moody’s Investor Service (Moody’s) and Standard & Poor’s (S&P) Global Ratings.

S&P affirmed their own AAA bond rating and stated in their official press release, “We believe the [Town of Davidson’s] credit stability is underpinned by management’s adherence to long-term planning initiatives, robust policies and practices, and proactive budgetary adjustments to maintain balance.”

Moody’s upgraded the Town of Davidson to Aaa issuer rating, the highest issuer rating possible on the Global Long-Term Rating Scale. Concurrently, Moody’s also upgraded the Town’s Aa1 rating, previously issued in 2021, to an Aaa rating for its G.O. Bonds.

The Town of Davidson’s current debt outstanding has a stable outlook according to Moody’s. The outlook reflects the expectation that the Town’s economy and tax base will continue to grow, leading to ongoing revenue growth and maintenance of a healthy financial position.

The upgrade of the Town’s issuer rating from Aa1 to Aaa reflects the Town’s strong economic growth and improved resident income levels, as well as the maintenance of ample reserves and liquidity. Davidson’s long-term liabilities are manageable, as are the fixed costs. The G.O. Bond debt was upgraded to Aaa, the same level as the issuer rating, based on the Town’s full faith credit pledge and unlimited ad valorem taxing authority.

If you have questions, please reach out to Finance Director Piet Swart by calling 704-940-9648 or by email at [email protected].