The City of Atlanta has received an upgrade from Standard & Poor’s Ratings Services to its general obligation bond ratings by three notches, from “A” to “AA” with a stable outlook. 

A positive bond rating is reflective of the City’s creditworthiness, and can significantly reduce interest rates when borrowing money. “An increase in our bond rating is a big deal because it allows us to get needed financing at a reduced interest rate,” said City of Atlanta CFO Jim Beard. “Over time, that represents a significant cost savings to the city that we can then invest in other critical needs.” 

In upgrading the City’s bond rating, S&P cited numerous factors, including its strong financial management policies and budgetary performance, abundant cash reserves and improved revenue outlook. 

Under Mayor Reed’s leadership, the City of Atlanta has made financial responsibility a priority, even as the nation has suffered the worst economic downturn since the Great Depression. The city’s cash reserves have been increased to more than $137 million, with an additional $5 million increase projected by the end of this year. Further, the City has adopted five consecutive budgets under Mayor Reed that have included no property tax increases, even as service delivery has improved. 

“This is great news, and reflects the hard work my administration has done to get the City’s financial house I order,” Mayor Reed said. “Restoring the health of our finances has been crucial to maintaining public trust. Our citizens can remain confident that we are being good stewards of their tax dollars, and will continue to do so in the future.”