On November 9, Moody’s Investors Service assigned a MIG 1 rating to Vineland’s $26.6 million Bond Anticipation Note (Non-Callable). Concurrently, Moody’s has affirmed the city’s Aa3 issuer and general obligation unlimited tax (GOULT) ratings. The issuer rating reflects the city’s ability to repay debt and debt-like obligations without consideration of any pledge, security or structural features.
The MIG 1 rating reflects the city’s strong underlying credit quality (reflected in its Aa3 long-term rating) and demonstrated history of market access.
The Aa3 issuer rating reflects the city’s below average resident wealth and income levels but strong financial position due to conservative budgeting. The rating also reflects the city’s below average long-term liabilities and fixed costs.
The absence of distinction between the issuer and GOULT ratings reflects the city’s general obligation full-faith and credit pledge as well as an unlimited property tax that is dedicated to debt service.
Moody’s typically does not assign outlooks to local government issuers with this amount of debt outstanding.
Factors that could lead to an upgrade to the ratings include Improved economic growth relative to the nation and Improved resident wealth and income
Factors that could lead to a downgrade to the ratings include material deterioration of resident wealth and income, material growth in leverage absent continued economic and financial growth, sustained declines in reserves and liquidity (GOULT and short-term), and downgrade of long-term credit quality (short-term)
The notes are backed by the city’s pledge of its full faith and credit backed by its legal obligation to levy ad valorem tax on all taxable property for the payment of debt service without limit as to rate or amount.
The Note is being issued to refund $26.3 million of the city’s $26.8 million Bond Anticipation Note, dated November 9, 2021 and maturing November 9, 2022 and to provide $258,750 in new money to fund a portion of capital projects.
The principal methodology used in the long-term ratings was US Cities and Counties Methodology published in November 2022. See the Rating Methodologies page on ratings.moodys.com for a copy of these methodologies.