Moody's Financial Rating

U.S. Public Finance ISSUER COMMENT City of East Ridge, TN 5 June 2026 Update to credit metrics RATING Issuer Rating 1 Issuer profile Aa3 No Outlook The City of East Ridge is located in Hamilton County in southeastern Tennessee, bounded on the south by the Georgia state line. The city lies within the southeastern suburbs of Chattanooga. Analyst Contacts Key indicators Nathan Carley +1.312.706.9958 AVP-Analyst Exhibit 1 nathan.carley@moodys.com East Ridge (City of) TN Orlie Prince +1.212.553.7738 2022 2023 2024 2025 Aa Medians Associate Managing Director Economy orlie.prince@moodys.com Resident income ratio (%) 76.4% 77.2% 84.3% N/A 114.1% Full Value ($000) $1,766,446 $1,782,681 $2,594,157 $2,629,436 $3,130,196 CLIENT SERVICES Population 22,040 22,034 22,070 N/A 22,330 Full value per capita ($) $80,147 $80,906 $117,542 N/A $140,110 Americas 1-212-553-1653 Annual Growth in Real GDP 5.6% -1.3% N/A N/A 1.9% Asia Pacific 852-3551-3077 Financial Performance Revenue ($000) $25,543 $34,963 $34,968 $32,095 $57,424 Japan 81-3-5408-4100 Available fund balance ($000) $10,752 $13,550 $26,525 $23,388 $31,108 EMEA 44-20-7772-5454 Net unrestricted cash ($000) $16,033 $23,130 $27,889 $25,345 $43,921 Available fund balance ratio (%) 42.1% 38.8% 75.9% 72.9% 56.8% Liquidity ratio (%) 62.8% 66.2% 79.8% 79.0% 80.3% Leverage Debt ($000) $14,078 $16,818 $27,073 $27,348 $38,979 Adjusted net pension liabilities ($000) $15,869 $10,911 $8,505 $9,156 $36,275 Adjusted net OPEB liabilities ($000) $2,612 $2,223 $1,422 $1,588 $3,698 Other long-term liabilities ($000) $576 $725 $593 $633 $1,773 Long-term liabilities ratio (%) 129.7% 87.7% 107.5% 120.7% 175.0% Fixed costs Implied debt service ($000) $888 $983 $1,168 $1,874 $2,605 Pension tread water contribution ($000) $152 $408 $357 N/A $1,547 OPEB contributions ($000) $53 $36 $38 $55 $167 Implied cost of other long-term liabilities ($000) $40 $40 $50 $41 $122 Fixed-costs ratio (%) 4.4% 4.2% 4.6% 7.2% 9.6% For definitions of the metrics in the table above please refer to the US Cities and Counties Methodology or see the Glossary in the Appendix below. Metrics represented as N/A indicate the data were not available at the time of publication. The medians come from our most recently published US Cities and Counties Median Report. The real GDP annual growth metric cited above is for the Chattanooga, TN-GA Metropolitan Statistical Area. Sources: US Census Bureau, East Ridge (City of) TN s financial statements and Moody s Ratings, US Bureau of Economic Analysis Moody's Ratings U.S. Public Finance Economy Exhibit 2 Resident Income Median household income ($) Resident income ratio (%) Median resident income ratio $60,000 120% 110% $40,000 100% $20,000 90% 80% $0 2018 2019 2020 2021 2022 2023 2024 Source: US Census Bureau - American Community Survey 5-Year Estimates; US Bureau of Economic Analysis; Moody's Ratings Financial performance Exhibit 3 Fund Balance Ratio Available fund balance ratio Median available fund balance ratio 60% 40% 20% 0% 2022 2023 2024 2025 Source: Audited financial statements; Moody's Ratings This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the issuer/deal page on https://ratings.moodys.com for the most updated credit rating action information and rating history. 2 5 June 2026 City of East Ridge, TN: Update to credit metrics Moody's Ratings U.S. Public Finance Leverage Exhibit 4 Total Primary Government - Long Term Liabilities Long-term liabilities ratio Median long-term liabilities ratio 200% 150% 100% 50% 0% 2022 2023 2024 2025 Source: Audited financial statements; Moody's Ratings 3 5 June 2026 City of East Ridge, TN: Update to credit metrics Moody's Ratings U.S. Public Finance Appendix Exhibit 5 Key Indicators Glossary Definition Typical Source* Economy Resident income ratio Median Household Income (MHI) for the city or county, adjusted for MHI: US Census Bureau - American Regional Price Parity (RPP), as a % of the US MHI Community Survey 5-Year Estimates RPP: US Bureau of Economic Analysis Full value Estimated market value of taxable property in the city or county State repositories; audited financial statements; continuing disclosures Population Population of the city or county US Census Bureau - American Community Survey 5-Year Estimates Full value per capita Full value / population Economic growth metric Five year CAGR of real GDP for Metropolitan Statistical Area or Real GDP: US Bureau of Economic Analysis county minus the five-year CAGR of real GDP for the US Financial performance Revenue Sum of revenue from total governmental funds, operating and non- Audited financial statements operating revenue from total business-type activities, and non- operating revenue from internal services funds, excluding transfers and one-time revenue, e.g., bond proceeds or capital contributions Available fund balance Sum of all fund balances that are classified as unassigned, assigned or Audited financial statements committed in the total governmental funds, plus unrestricted current assets minus current liabilities from the city's or county's business- type activities and internal services funds Net unrestricted cash Sum of unrestricted cash in governmental activities, business type Audited financial statements activities and internal services fund, net of short-term debt Available fund balance ratio Available fund balance (including net current assets from business- type activities and internal services funds) / Revenue Liquidity ratio Net unrestricted cash / Revenue Leverage Debt Outstanding long-term bonds and all other forms of long-term debt Audited financial statements; official across the governmental and business-type activities, including debt statements of another entity for which it has provided a guarantee disclosed in its financial statements Adjusted net pension liabilities (ANPL) Total primary government's pension liabilities adjusted by Moody's to Audited financial statements; Moody’s standardize the discount rate used to compute the present value of Ratings accrued benefits Adjusted net OPEB liabilities (ANOL) Total primary government's net other post-employment benefit Audited financial statements; Moody’s (OPEB) liabilities adjusted by Moody's to standardize the discount Ratings rate used to compute the present value of accrued benefits Other long-term liabilities (OLTL) Miscellaneous long-term liabilities reported under the governmental Audited financial statements and business-type activities entries Long-term liabilities ratio Debt + ANPL + ANOL + OLTL / Revenue Fixed costs Implied debt service Annual cost to amortize city or county's long-term debt over 20 Audited financial statements; official years with level payments statements; Moody’s Ratings Pension tread water contribution Pension contribution necessary to prevent reported unfunded Audited financial statements; Moody’s pension liabilities from growing, year over year, in nominal dollars, if Ratings all actuarial assumptions are met OPEB contribution City or county's actual contribution in a given period Audited financial statements Implied cost of OLTL Annual cost to amortize city or county's other long-term liabilities Audited financial statements; Moody’s over 20 years with level payments Ratings Fixed-costs ratio Implied debt service + Pension tread water + OPEB contributions + Implied cost of OLTL / Revenue *Note: If typical data source is not available then alternative sources or proxy data may be considered. For more detailed definitions of the metrics listed above please refer to the US Cities and Counties Methodology. Source: Moody's Ratings 4 5 June 2026 City of East Ridge, TN: Update to credit metrics Moody's Ratings U.S. Public Finance Endnotes 1 Issuer Rating reflects the government’s ability to repay debt and debt-like obligations without consideration of any pledge, security or structural features. In some circumstances, credit characteristics are sufficient to result in a GO bond rating that is higher than the Issuer Rating. Local governments with Moody’s rated debt outstanding will have separate ratings detailed by security pledge on their Moody's.com issuer page and credit opinions explaining our credit view for each rating. 5 5 June 2026 City of East Ridge, TN: Update to credit metrics Moody's Ratings U.S. Public Finance © 2026 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). 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REPORT NUMBER 1484514 7 5 June 2026 City of East Ridge, TN: Update to credit metrics Moody's Ratings U.S. Public Finance CLIENT SERVICES Americas 1-212-553-1653 Asia Pacific 852-3551-3077 Japan 81-3-5408-4100 EMEA 44-20-7772-5454 8 5 June 2026 City of East Ridge, TN: Update to credit metrics