One of the three big rating agencies has given Worcester it’s highest-ever rating as the city’s property valuation jumped $1 billion in one year.
The city of Worcester announced Monday that Fitch Ratings upgraded the city’s municipal bond rating to AA, up from AA-. This marks the city’s highest-ever rating, according to officials.
“[The rating] is a statement that the city has strong management, demonstrated positive financial performance over time, and continued economic development growth,” City Manager Edward Augustus said in a statement. “It required us to execute a coordinated long-range plan, making difficult decisions in order to deliver consistent, steady progress to expand our tax base, grow our reserves, and address our long-term liabilities.”
Private sector investors depend on the rating agencies ratings and reports of the city’s fiscal health when investing by purchasing the city’s bonds. Higher ratings mean lower borrowing costs. An upgrade can potentially save taxpayers millions when the city uses bonds to pay for schools, roads and other infrastructure and capital projects.
The news comes after a recent announcement that Worcester’s total property value this year experienced its largest jump in a decade, climbing by $1 billion, a 9.16-percent increase.
In addition to the Fitch Ratings AA (stable) rating, Moody’s Investors Service and Standard and Poor’s Rating Service have reaffirmed the city’s strong ratings of Aa3 (stable) and AA- (stable), respectively.
