Dec. 30, 2016
The City of Wilson’s bond rating was recently upgraded by Fitch Ratings to AA+, a significant endorsement of the financial health of the city. The upgrade was announced in mid-December as part of a periodic evaluation of the city’s financial statements and budgetary practices.
“We work hard to be good stewards of public funds,” said Grant Goings, Wilson city manager. “We are proud to have bond rating agencies compliment our Council’s policies and our management practices, and ultimately higher ratings will save money.”
Bond ratings directly affect the interest rates paid by municipalities to finance large projects. The bonds affected by this upgrade were issued in 1995 to enlarge, expand and improve the water system of the city, including the construction of Buckhorn Reservoir. The bonds will be retired in 2023.
Fitch Ratings’ statement announcing the upgrade credits several factors in its decision, including “the city’s solid revenue framework, low long-term liability burden, stable growth prospects and reserve funds.”
“Fitch recently revised their criteria for U.S. state and local government credits, focusing on communicating opinions more clearly,” said Kim Hands, the city’s chief financial officer. “With this revision, Fitch advised that when applying the criteria to outstanding surveillance ratings, they expect rating changes (up and down) for less than 10% of existing tax-supported ratings. I was pleased to hear that the City of Wilson’s sound fiscal practices led to an upgrade.”