Bond rating agencies S&P Global and Fitch Ratings have assigned high credit ratings to the City of Minneapolis, reflecting confidence in the City’s financial health ahead of a $123.6 million bond sale in August.
S&P Global Ratings has assigned its AAA Stable rating to the City’s $123.6 million series 2022 general obligation (GO) bonds. Despite the ongoing challenges associated with the COVID-19 pandemic and the impact of 2020 civil unrest following the murder of George Floyd, the bond rating agency cited key factors for its high rating: very strong reserves, a robust economy that continues to grow at a historic rate, and proactive financial management.
Fitch assigned an AA+ Positive rating to the City. “[The rating] reflects the city’s strong revenue growth prospects driven by an expanding population and income levels, broad independent revenue-raising ability, and solid budgetary management that has resulted in healthy reserves and considerable gap-closing capacity,” the credit agency noted. It also cited statewide pension reforms as a factor in keeping the City’s long-term liability burden moderately low over time.
“I am pleased that the rating agencies recognized the proactive and prudent financial management that resulted in the City’s financial resiliency in recent years,” said Dushani Dye, the City’s chief financial officer. “These high ratings will allow the City to borrow and finance needed capital improvements throughout the city for lower interest rates.”