City of Richmond receives credit rating upgrade from top-three rating agency
With upgrade from Moody’s Investors
Services, city’s credit ratings now highest in half century
Moody’s Investors Services
has upgraded the city’s outstanding general obligation debt rating to Aa1, the
next-to-highest rating possible.
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Moody’s Investors Services
has upgraded the city’s outstanding general obligation debt rating to Aa1, the
next-to-highest rating possible.
This is the first general
obligation upgrade received by the city since 2014. As a result of the most
recent upgrade, the city’s ratings from all three of the major rating agencies
fall only one notch below the highest possible rating.
With Moody’s upgrade of
Richmond to Aa1, the city’s credit is in its highest standing in half a
century.
“I am pleased that Wall Street
continues to recognize the progress our city has made in recent years,” said
Mayor Stoney. “We got our financial house in order, and it’s paying off.”
The upgrade follows Moody’s
July 2018 promotion of the city’s outlook from “stable” to “positive.” Moody’s
cited Richmond’s continued growth, diversified tax base, enhanced reserves and
conservative budget assumptions as its reasons for the upgrade.
A city’s credit rating
determines how much the locality can borrow to build capital projects such as
schools, as well as the interest rate affiliated with that sum. The higher the city’s
credit rating, the lower the interest rate.
“A strong credit rating from all three major
agencies allows us to literally
build One Richmond, a city where residents can trust their government to
provide the services they rely on and the development that will keep us
growing,” said Mayor Stoney.
Acting Chief Administrative
Officer Lenora Reid noted, “This credit rating upgrade can be attributed to
effective operations citywide and the extraordinary efforts of the city’s
finance staff. We are continuing on our upward trajectory.”
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