In a report dated October 2, 2024, Moody’s increased its rating on Collier County’s Series 2018 Tourist Development Tax Revenue Bonds by two notches. Rating increases of two notches in one report are not common. The report stated the following:
“The upgrade of the Tourist Development Tax Revenue Bonds, Series 2018, issued by Collier County, to Aa1, which is one notch below the county’s issuer rating, reflects both growth in revenues (and only minor decline in 2020) and the expectation that revenue will continue to provide strong coverage over 4x maximum annual debt service. These strengths are offset by the narrow nature of the pledge of hotel taxes.”
Bond ratings are important indicators of the creditworthiness of Collier County Government and the debt it issues. Higher ratings enable Collier County to borrow at lower, more favorable interest rates, potentially saving taxpayers millions of dollars over the life of a bond issue.
While we knew the Tourist Tax credit was being reviewed by Moody’s, we were pleasantly surprised by the two-notch increase in the rating, the Clerk and Comptroller’s Office, the Board of County Commissioners, County Administration, and the County’s Office of Management and Budget continue to work diligently to secure and maintain the best possible ratings for Collier County. I want to recognize the effort and cooperation put forth to achieve these results for our citizens.
The Series 2018 Tourist Tax bonds are only one of the credits that Collier County has outstanding. As alluded to above, Collier County currently enjoys a Moody’s Issuer Rating of AAA. An issuer rating is a broad-based indication of the creditworthiness of an issuer.
For more information, contact Derek M. Johnssen, Director of Finance and Accounting at (239) 252-7863 or log on to www.emma.msrb.org for information on outstanding County debt.