Level debt service is a provision in a municipal charter stipulating that payments on municipal debt be approximately equal every year, making it easier to project the amount of tax revenue needed to meet obligations.
Moody's Investment Grade ratings, provided by Moody's Investors Service, play a crucial role in evaluating the creditworthiness of municipal short-term debt securities. These ratings help investors and financial institutions make informed decisions by classifying securities as MIG-1, 2, 3, and 4 to signify best, high, favorable, and adequate quality, respectively. All these ratings are considered investment grade or bank quality.
Per-Capita Debt represents the total bonded debt of a municipality, divided by its population. It is a key metric used to assess and compare the debt burden of municipalities over time.
A Revenue Anticipation Note (RAN) is a short-term debt issue by a municipal entity, used to finance urgent needs and repaid with anticipated revenues such as sales taxes. Interest earned on RANs is generally tax-free for holders.
