Written by The Business Journal Staff
Mayor Jerry Dyer recently announced that the City of Fresno’s credit rating has improved.
Moody’s Investor Service, a bond-credit rating company offering financial services and research on bonds issued by commercial and government entities, has significantly upgraded the city’s credit rating.
This most recent credit rating represents strong faith from the investment community that Fresno’s finances are in a good position to deliver the public services the community needs—welcome news at a time when many cities are experiencing revenue declines due to the COVID-19 pandemic, a press release from the City of Fresno stated.
Fresno’s issuer rating went from A3 to A2—both ratings represent an upper-medium-level investment grade credit rating and low credit risk.
As the only city in California with a fully-funded pension system, Fresno does not have long term pension liabilities that will used up future general fund dollars that could be used to maintain parks, pave streets, and fund public safety, according to the release.
In practical terms, this credit rating grade would mean lower interest rates for the city on any new bonds issued.
“For Moody’s to take this action during a pandemic, when other cities are laying off employees and watching their revenues drop, is truly extraordinary,” Mayor Dyer said. “This is yet another sign that the City is on sound financial footing and marks a continuing turnaround from eight years ago, when we were on the edge of bankruptcy.”