Minneapolis again receives high credit ratings for its financial management
The City of Minneapolis has again been assigned some of the highest credit ratings of cities in the country. The City has received a new round of ratings from all three major rating agencies as it prepares to issue new bonds next week. High bond ratings and positive outlooks from the ratings agencies allow the City to save taxpayer dollars by issuing bonds and borrowing funds at the lowest possible interest rates.
Fitch Ratings and Standard and Poor’s Ratings Services have again assigned the City of Minneapolis AAA ratings, the highest ratings possible. Moody’s affirmed the City’s Aa1 rating, which is its second-highest rating, placing Minneapolis among the top-rated cities and local districts in the country. Less than 10 percent of jurisdictions, and just a handful of major cities, have a Aa1 rating or higher from Moody’s.
In giving Minneapolis a top rating, Fitch Ratings noted that the City of Minneapolis consistently exhibits stable financial performance and maintains healthy reserve levels. Moody’s recognized Minneapolis for having well-managed financial operations with comprehensive multi-year financial planning. Standard and Poor’s notes that, “the stable outlook reflects our view of the city's strong economy and very strong management conditions.” All three rating agencies noted that Minneapolis has a broad and diverse economy.
In the last several years, City leaders have taken significant steps to streamline City services, find efficiencies and address financial challenges. Long-term financial planning has allowed the City to maintain strong financial reserves and assures that ongoing expenses are supported by ongoing revenue. City leaders have also cut the City’s property-tax-funded debt significantly in the last several years.
Published Nov 17, 2014