Credit rating agency Fitch has upgraded the City of Atlanta’s rating to an all-time high.
According to a press release, Fitch upgraded the city’s Issuer Default Rating (IDR) from AA+ to AAA. This is the highest Fitch credit rating in the city’s history.
Combined with a Moody’s bond rating of Aa1, Atlanta has become “even more attractive to businesses, potential homebuyers, students, and event organizers due to its sound fiscal management, diversified local economy and forward-thinking government,” the release said.
“Making Efficient and Ethical Government a pillar of my Administration’s agenda is more than a tagline—it is a mission, and it is a directive for every single City department. Under the leadership of Chief Financial Officer Mohamed Balla, the Department of Finance has taken this mission to the next level and accomplished something we should all be proud of,”Mayor Andre Dickens said in a statement. “These ratings reflect responsible, sound fiscal management and confidence in how we do business in this city. Thanks to the hard work of the DOF and so many others, the City is in the strongest fiscal position in its history, and we will continue to make sure we plan our finances with resilience in mind and an eye on the future.”
Strong credit ratings confirm that the city’s financial obligations are of high quality and are subject to low risk, allowing Atlanta to issue bonds at relatively lower interest rates, the release said.
“We are thrilled that Fitch Ratings has upgraded the City of Atlanta to AAA, recognizing our strong fiscal foundation and long-term resilience. This achievement reflects our commitment to prudent financial management and the hard work of our finance team and city leadership, positioning Atlanta to invest in infrastructure, enhance services, and support growth for all residents,” City of Atlanta Chief Financial Officer Mohamed M. Balla said in a statement.
The Atlanta City Council also released a statement following the rating announcement: “Achieving the highest possible credit rating is testament to the years of dedication from City administration and staff both past and present. It’s a collaborative effort to develop a fiscal foundation that supports the City’s ongoing progress in creating an Atlanta where people feel safe to live, work and play. Our well-earned triple-A rating will allow us to more efficiently move forward with the City’s most critical Capital Improvement Projects.”
In related news, Fitch also upgraded MARTA’s bond rating from AA to AA+.
“This second rating increase in as many review cycles reflects MARTA’s financial stability and strong long-term revenue growth outlook,” said MARTA General Manager and CEO Collie Greenwood said in a statement. “Bottom line, MARTA remains a good steward of taxpayer money and is well-positioned to increase our competitiveness for federal funding and meet the expansion commitments made to our jurisdictional partners.”
