Oakdale's Bond Rating Upgraded To Aa1 By Moody's

OAKDALE, MN —Moody's Investor Service on Thursday announced it had upgraded the City of Oakdale's general obligation unlimited tax (GOULT) rating to Aa1 from Aa2.

This was the first time Oakdale's bond rating was upgraded since 2010, when it went to Aa2 from Aa3, the city said.

According to Moody's, the rating is determined based on four major factors: economy/tax base, finances, management, and debt/pensions.

"The upgrade to Aa1 reflects the city's very strong financial position, growing tax base with solid resident wealth and income, and moderate debt burden," Moody's said in a statement. "These strengths are balanced against elevated fixed costs and an above-average pension burden."

According to WM Financial Strategies, a bond rating performs the isolated function of credit risk evaluation and is often the single most important factor affecting the interest cost on bonds.

"Oakdale is among the top echelon of cities in Minnesota that enjoy and benefit from this outstanding bond rating, which in turn reduces our cost of debt to further enhance our strong financial position," the City of Oakdale said in a statement.