Moody’s upgrades City’s bond rating, citing ‘prudent budget management’

June 8, 2026 - Moody’s Ratings, the international credit ratings firm based in New York, issued a rare bond rating increase to the City of Corvallis. Citing the City’s “robust financial position and growing local economy,” the ratings agency upgraded the City’s bond rating from Aa2 to Aa1.

It’s the first rating increase for the City in nearly a decade. Prior to this upgrade, the City had maintained its Aa2 rating since 2017.

The assessment from Moody’s that accompanied the rate increase described the City’s relatively low debt positions and a diverse revenue mix that supports community services in Corvallis.

“The city has annually increased fees in line with expenditures, and property tax revenue has steadily grown as OSU and the city remain a strong draw for students and business activity,” Moody’s stated in a recent press release about the ratings improvement.

The rating improvement comes as the City Council nears a decision about funding options for municipal facilities, as well as a budget shortfall that is anticipated to arrive in the next biennium. The newly announced rate increase has the potential to reduce by hundreds of thousands of dollars the price that the City of Corvallis would pay to borrow money for future capital projects. The rating improvement also increases the pool of investors interested in purchasing bonds issued by the City.

“This bond ratings increase is a huge vote of confidence in the direction that Corvallis is headed as a government organization,” said Finance Director James Inglis. “Moody’s has recognized our thoughtful, future-focused financial decisions and policies, and the result is a rating improvement that will save Corvallis taxpayers money for years to come.”

The improved rating will also apply to the bonds that will be issued soon to fund the City’s Park Maintenance Facility, which is scheduled to break ground this month in Avery Park.