Rating Agency Affirms City's Strong AAA Rating
Monday January 7, 2013
Citing a resilient local economy and good financial management by the city, the credit rating agency Fitch today affirmed Louisville Metro’s strong AAA rating for general obligation bonds.
“The overall depth and diversity of the local economy is underscored by steadily growing employment levels which contribute to solid socioeconomic characteristics,” the agency said in its report.
Fitch also noted that the city has maintained satisfactory amounts in its ending fund balance, also known as the Rainy Day Fund. The city ended last fiscal year with a Rainy Day fund of $62.4 million, which is within the suggested range of 10 to 15 percent. The city’s Rainy Day Fund is 12.3 percent of its general fund budget, up from 11.5 in the previous fiscal year.
Fischer credited Chief Financial Officer Steve Rowland and his team for keeping a close watch on taxpayer dollars, which led to the rating affirmation.
“Citizens — and our bond investors — can remain assured that Louisville Metro operates a sound, fiscally-responsible government,” Fischer said.
A full copy of Fitch’s report can be accessed at the link below.