Credit ratings are opinions about credit risk. Ratings express an opinion about the ability and willingness of an issuer, such as a corporation or state or city government, to meet its financial obligations in full and on time.
The City’s credit is reviewed and rated with each bond issue by both Standard & Poor’s (S&P) and Moody’s Investors Service.
Standard & Poor’s Global Ratings – AA-
S&P issues credit ratings in range from ‘AAA’ (Extremely strong capacity to meet financial commitments) to ‘D’ (Payment default on a financial commitment or breach of an imputed promise; bankruptcy petition or similar action taken). A plus (+) or minus (-) can be added to ratings from ‘AA’ to ‘CCC’ show relative standing within the major rating categories.
The City’s rating of ‘AA-‘ indicates a very strong capacity to meet financial commitments.
Fitch Rating 2016 – AA-
Fitch issues credit ratings in range from ‘AAA’ to ‘D’ very similar to S&P.
The City’s rating of ‘A+’ indicates capacity for payment of financial commitments is considered strong.