Moody’s gives Medellin ‘outstanding’ financial rating

Ratings agency Moody’s gave Medellin an “outstanding” grade for its financial performance and investment levels in a report released Monday, reports Caracol Radio.

The investors service, which provides financial research and risk analysis, gave Medellin issuer ratings of Baa3 (Global Scale, local currency and foreign currency). Colombian news source Caracol Radio described this grade as “outstanding.”

Moody’s praised the city’s low level of debt and high level of liquidity.

“Between 2004 and 2008, Medellin generated cash financing surpluses equivalent to roughly 14.0%, on average, of total revenues,” while “net direct and indirect debt amounted to 7.1% of total revenues in 2008, a low level.”

Medellin’s rating is due to its prudent fiscal management, broad revenue base, and long-term financial planning, according to the agency.

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