City of London maintains Aaa credit rating

(Source: Dragon Claws/iStock/Getty Images Plus)

The City of London has maintained its Aaa credit rating.

According to Moody's, "Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk."

Moody’s reviews the city’s credit worthiness annually, then assigns a credit rating.

This includes a review of the city’s most recent audited financial statements, the most recent multi-year budget and applicable annual updates.

"I’m incredibly proud to see that as London continues to grow, the city has maintained its Aaa credit rating for another consecutive year. Sustaining this standard provides our municipality with continued advantages and financial flexibility," said Mayor Josh Morgan. "This achievement truly reflects the dedication and hard work of our senior financial team and the entire team at City Hall."

Moody's credit rating scale. (Source: Moody's)In assigning this rating, Moody’s noted in its rationale that the city’s excellent governance and management, low reliance on debt and high levels of cash and investments provide increased bondholder security.

While upward pressure was noted, Moody's said debt and interest burdens remain well positioned relative to peers.

The organization credited the city’s strong debt management frameworks and multiple policies contributing to debt issuance reductions as positive factors in minimizing potential pressures from forecasted increases in debt and interest burdens.