PITTSBURGH, PA (February 7, 2017) Fitch Ratings today announced it has raised the City's bond rating from "A" to "AA-," reflecting the City's strong budget controls and its path to exiting Act 47 fiscal oversight.
"The 'AA-' rating reflects the city's very strong operating performance including solid reserve safety margins and significant independent ability to increase revenues. The rating also reflects the city's currently satisfactory expenditure flexibility under PA Act 47, which provides management significant expenditure controls; however, carrying costs for debt service, annually required pension contributions and other-post employment benefit costs (OPEB) are high. The overall long-term liability burden is moderate compared to the city's economic resource base," a release from Fitch Ratings announced today.
"The city has maintained strong general fund reserves since 2009 through adherence to its multi-year financial plans, which include balanced general fund operations with minimal use of reserves for cash funded capital projects. The positive financial performance has been aided by ongoing state oversight. Management has a strong track record of conservative budgeting and recently improved its revenue forecasting process for greater accuracy," the release continues.
Budgets from Mayor William Peduto's administration have ensured that the City stays true its long-term financial responsibilities, while investing in core services such as Public Safety, street resurfacing, and maintenance and investment in city facilities, as well as in longer-term capital infrastructure needs.
"Today's announcement from Fitch continues the progress we've made toward putting the City on a path to long-term financial stability," said Sam Ashbaugh, the City's Chief Financial Officer.
The City expects to issue $60 million in bonds later this year. It will be the City's first bond issue – which largely goes to long-term infrastructure needs – in two years.
Tuesday, February 7, 2017
City of Pittsburgh
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