The city of Vicksburg has retained its A2 bond rating for its second draw of the $18 million bond issue the Board of Mayor and Aldermen approved in 2015.

Mayor George Flaggs Jr. said the rating came after a review by Moody’s Investment Services, a New York-based provider of credit ratings and risk analysis. The review, he said, was required before the city could get the remaining $9.2 million from the bond issue.

“It’s probably good to do it every time you borrow money,” he said.

He said the Moody’s review commended the city on its management structure and complimented city officials on how the city’s money was managed.

“It simply means we are continuing to be on the path for the future of this city in terms of its financial stability. My goal is to improve the rating. I’m elated, but I will not be completely satisfied until we improve our rating, because I believe it can be done and it was one of my goals,” Flaggs said.

North Ward Alderman Michael Mayfield said the renewed rating was an indication of the Board of Mayor and Aldermen’s efforts to watch the city’s finances.

“We’ve worked hard keep our bond rating up, and they (Moody’s) gave us a laundry list of things we needed to do to keep it up, but I want us to get it to a higher level,” North Ward Alderman Michael Mayfield said.

“I think this board has gone above and beyond in its efforts to keep its bond rating up and we need to get it higher.”

South Ward Alderman Alex Monsour said the board “does all we can to be fiscally responsible. We’re taking care of the city’s business — the people’s business — and we’re going to make sure we have the best bond rating we can possibly have and take care of the people’s money.”

Bond ratings are used to determine a borrower’s ability to pay off a loan or bond issue. The ratings go from AAA to C, with AAA being the highest and best rating and C the lowest. Moody’s rating service also has a “WR” designation, which means the rating has been withdrawn.

An A2 rating means the city has more than a sufficient financial ability to pay off the loan.

When cities file for a bond rating, they are required to provide continuous financial information to the rating service, such as audit reports.

Bond rating services use the information to determine if the municipality will keep its rating. Most bond issues are for 20 years. The service wants to know the city will be able to continue paying the debt service. If the city fails to provide continuous and timely information, it can have its bond rating reduced or removed.

If a city loses its bond rating, it must reapply and risk getting a lower bond rating than it previously had.

That happened to Vicksburg in 2012, when Moody’s pulled the city’s A bond rating for failure to provide current audit reports. The rating was restored in late 2013, after the audit reports were brought up to date.