For the first time in more than a decade, two of the three independent credit rating agencies have upgraded the City of Worcester’s municipal bond rating.
In a memo to City Council, City Manager Michael V. O’Brien said Standard & Poor’s upgraded the city two grades from A- to A+, while Moody’s nudged it upward from A1 to AA3. Fitch Ratings reaffirmed its AA- rating for the city, with a positive outlook.
Standard & Poor’s and Moody’s cited the city’s financial management, operating stability and recent efforts to address health care for retired workers as reasons for the upgrades. All three agencies highlighted the city’s development plans and progress of CitySquare development, Union Station, the North Main area and expansion of the CSX Corp railroad, according to the memo.
“Economic development efforts have been significant, increasing the investment in the city and its ability to attract new business ventures,” Fitch said.
“These rating improvements are a positive affirmation that we continue to make the right decisions for the long-term stability and future of our community,” O’Brien wrote. “We are bucking the trend—few if any government groups are receiving upgrades at all … we lived within our means and addressed our budget busters early on to balance our budgets every year. We built up our reserves, made strategic infrastructure improvements and leveraged private investment — all while in the midst of the worst economy since the Great Depression.”
As in recent years, the city created a two-hour presentation for the agencies, which included a tour and video about private and public economic development activity, an overview of the city’s financials and a plan for the future.
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