SNELLVILLE – Moody's Investors Service has assigned a Aa2 rating to the city's proposed $4 million Taxable Revenue Bonds for the Cobblestone Project as part of the city's Towne Center project.
In connection with the Snellville Downtown Development Authority's issuance of revenue bonds for the purchase of the Cobblestone Office Park, located at Oak Road and Clower Street, the city was obliged to seek an updated bond rating from Moody's Investors Service. The Moody's review resulted in a very strong financial rating of Aa2.
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.
Factors that could lead to an upgrade in the near future are a tax base expansion and strengthened wealth levels.
The Towne Center project will transform a block of Snellville's downtown into a livable and walkable downtown district. A governmental agreement with Gwinnett County has been approved to build a new library, relocating the Elizabeth Williams branch to the Towne Center. The city is also planning to build a city market on the Towne Center site.