Despite a recession that has battered municipal bond ratings across the country, Bellevue remains one of just two cities in the state to have an AAA bond rating, the City Council learned Monday.

Moody’s and Standard and Poor’s, Wall Street’s major bond rating services, both assigned their highest ratings for Bellevue’s general obligation bonds last week, as the city prepares to refund bonds issued for the remodeling of City Hall to take advantage of low interest rates.

“This affirms the financial policies that you work very hard on and the budgeting policies that follow,” City Manager Steve Sarkozy told the council.

“Those have been looked at with great scrutiny by both agencies, and we’ve come back with flying colors. Great work by staff, great work by council.”

The city’s high bond rating, which Seattle also has, allows it to borrow money at lower interest rates. The city is set to refund the City Hall bonds this week, in a move expected to drop its average interest rate from 5.2 percent to approximately 3.5 percent. The refunding is expected to save the city more than $9 million over the remaining 30 years of the bond.