The City of Arlington received high marks for its financial strength following a review by the three major credit rating agencies in May.For the first time, Fitch upgraded the City’s General Obligation debt to the highest possible rating: AAA. Standard & Poor’s gave Arlington a AAA rating in 2013. Since then S&P has affirmed the AAA rating for 2014 and 2015. Moody’s also maintained its rating of Arlington at Aa1 which is one notch below its highest rating.The City’s bond ratings have been improving steadily in recent years, as the attached chart indicates. The attached chart also includes the ratings for the City’s Water Utilities.Fitch said that the higher rating reflects their opinion of:
- The City’s strong financial performance, financial resilience and manageable long-term liabilities;
- Arlington’s strong financial profile is supported by expenditure flexibility, a positive revenue trajectory, healthy reserves and ample liquidity; and,
- The financial performance of the City of Arlington’s water and wastewater system is strong, characterized by solid debt service coverage (DCS) in excess of 2.5 times over the past five fiscal years.
Moody’s also designated a stable outlook for Arlington, citing the City’s improving economy and steady and capable management.City Manager Trey Yelverton said that the ratings upgrade has been years in the making and will save the City and its taxpayers money.“The higher credit rating allows the City of Arlington to hold down costs by borrowing money at lower interest rates for future projects,” Yelverton said.Here is a look at the City of Arlington’s Ratings Reports:Fitch – General ObligationFitch – Water and Waste Water SystemStandard & Poor’s – General ObligationStandard & Poor’s – Water and Wastewater SystemMoody’s – General ObligationMoody’s – Water and Wastewater System
|Water & Wastewater||AAA||AAA||Aa2|