Rating Action: Moody's assigns Aa1 to Gainesville Redevelopment Authority, GA's city-guaranteed revenue bonds, outlook stableGlobal Credit Research - 01 Sep 2022New York, September 01, 2022 -- Moody's Investors Service has assigned Aa1 ratings to the Gainesville Redevelopment Authority, GA's $32.8 million Tax-Exempt Revenue Bonds (Gainesville Projects), Series 2022A and $3.1 million Taxable Revenue Bonds (Gainesville Projects), Series 2022B. Concurrently, Moody's has affirmed the Aa1 rating on the authority's outstanding Series 2012B and 2009A city-guaranteed bonds. Following the issuances, the authority will have approximately $53.9 million of city-guaranteed debt outstanding. The outlook is stable.RATINGS RATIONALEThe Aa1 rating reflects the city's strong financial position that is supported by a robust and growing tax base and prudent budget management. The rating also incorporates the city's strong full value per capita, moderate debt and pension burden, and resident incomes that are below comparably rated cities. The rating also considers the provisions of an intergovernmental contract between the city and the Gainesville Redevelopment Authority.RATING OUTLOOKThe stable outlook reflects the expectation that the city's financial position and debt profile will remain in line with the Aa1 rating category given a strong management team as well as the city's continued economic growth.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS- Decrease in pension and/or OPEB burden or their associated fixed costs- Continued economic growth that contributes to an improvement in resident incomesFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS- Sustained trend of imbalanced operations and/or material decline in reserves- Significant growth in long-term liabilities or associated fixed costsLEGAL SECURITYThe bonds are secured by an absolute and unconditional general obligation pledge of the city of Gainesville pursuant to an intergovernmental contract between the city and the Gainesville Redevelopment Authority.USE OF PROCEEDSThe Series 2022A bonds will be used to finance a portion of multiple projects including a multi-field recreation facility referred to as "The Coop" and a building referred to as "The Boathouse" that will contain boating facilities, a conference center, city administrative offices, among other projects. The Series 2022B bonds will finance a portion of certain retail space at the above mentioned facilities.PROFILEGainesville, GA is located about 50 miles northeast of Atlanta, GA (Aa1 stable) in Hall County. The city operates under a Council-Manager form of government and provides routine municipal services like public works, safety, parks and recreation, and other general governmental services.METHODOLOGYThe principal methodology used in these ratings was US Local Government General Obligation Debt published in January 2021 and available at https://ratings.moodys.com/api/rmc-documents/70015. An additional methodology used in these ratings was Guarantees, Letters of Credit and Other Forms of Credit Substitution Methodology published in July 2022 and available at https://ratings.moodys.com/api/rmc-documents/386295. Alternatively, please see the Rating Methodologies page on https://ratings.moodys.com for a copy of these methodologies.REGULATORY DICLOSURESFor further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found on https://ratings.moodys.com/rating-definitions.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the issuer/deal page for the respective issuer on https://ratings.moodys.com.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://ratings.moodys.com/documents/PBC_1288235.Please see https://ratings.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.Please see the issuer/deal page on https://ratings.moodys.com for additional regulatory disclosures for each credit rating. Francis Mamo Lead Analyst REGIONAL_NE Moody's Investors Service, Inc. 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