The City of Knoxville received a very favorable interest rate on recent bond sales, despite having their rating downgraded. City Manager Harold Stewart tells KNIA/KRLS News that the city was given an A2 rating, down from an A1 that they received in 2010. He explains that Moody’s, who does the rating, was concerned about the lower amount of reserve funds they have. That’s something Stewart says they’ve been working on in the past couple years, and they’re starting to see those improvements. Despite that, that city received an interest rate of just 1.34 percent from Banker’s Bank of Madison, Wisconsin. Stewart says that’s a very good rate. The bonds will be retired in 2023. Work on the downtown Streetscape project, for which the bond funds are for, is expected to begin this summer.