By reviewing the case study of Obtaining a better bond rating: A case study by Charles Coe, respond to the following questions.
To answer these questions, read the Asheville Case study in the course documents section. You will also find Exhibits A, B, and C, which are in the case helpful.
1. Why did Moody’s not upgrade Asheville in 9184, 1986, and 1987? How did Asheville respond to Moody’s concerns? What did the city do to improve itself in the four rating areas? Specifically discuss the steps Asheville took to improve itself in the economic, debt, governmental and financial areas?
2. What did the city do to improve the way it marketed its bonds with the bond rating agencies?
3. Of any of the improvements, which do you think were the most important?
4. How important a factor was the completion of the two interstate highways? Would the city have received a rating upgrade without the completion of these highways?
5. How important is it for local officials to have a close working relationship with bond rating analyst?
6. Based on the model presented in the case, what else could the city have done to improve its chances of getting a better rating?