Moody’s Investors Service and Fitch Ratings—two of the world’s leading credit rating agencies—affirmed Atlanta’s Aa1 and AA+ ratings on the City’s general obligation bonds.  Moody's Investors Service has assigned an Aa1 rating and Fitch Ratings has assigned an AA+ rating to the City’s total issuance of more than $409 million in general obligation debt intended to improve the City’s parks and recreational facilities, public safety facilities and transportation and trails infrastructure. The ratings confirm that the City’s financial obligations are of high quality and are subject to low risk.

“The fiscal health of the City of Atlanta is a pillar of our Administration’s commitment to be responsible stewards of public resources and do right by those we serve,” said Mayor Andre Dickens. “With Atlanta’s economy and influence rapidly growing, it is more important than ever for the City to stand on solid financial ground for our shared futures. Thank you to CFO Balla and the entire Finance team for their leadership and solid operations that led to this achievement.” 

Moody’s cites “the city's exceptionally strong financial management, healthy reserve levels, and balanced financial operation” as contributing factors for the excellent rating. Fitch attributes its rating to the fact that the “strength of the city's unrestricted reserve position and fiscal tools position it to manage future budgetary shocks.”

“We are pleased that Moody’s and Fitch recognize our success in maintaining liquidity while growing a healthy fund balance to above 25% of budgeted expenditures and paying down debt,” said Mohamed Balla, Chief Financial Officer. “The City meets the needs and obligations of a large, metropolitan city through all kinds of economic cycles without sacrificing its commitment to sustainability and resilient investments that improve the health and safety of our communities.”

The strong credit ratings allow the City of Atlanta to issue bonds at relatively lower interest rates. As the City of Atlanta prepares to issue bonds to implement the Moving Atlanta Forward infrastructure program, these ratings will help ensure lower borrowing costs so maximum dollars are invested in the vital projects across the city.

Additionally, with this financing the City of Atlanta is issuing its first “social” bonds, to be designated in accordance with the Social Bond Principles published by the International Capital Markets Association (“ICMA”).  As such, the bonds will be particularly attractive to ESG investors—the fastest growing sector of the bond market—broadening the appeal of the bonds to these investors.