City of Suffolk holds strong with AAA credit rating

Published 8:19 pm Monday, October 2, 2023

In a Friday, Sept. 29 news release, the City of Suffolk said all three rating agencies (Fitch Ratings, Moody’s Investors Service, and S&P Global Ratings) affirmed the city’s AAA rating with a stable outlook. The city achieved an AAA rating from all three rating agencies for the first time in the fall of 2019. 

“The AAA Rating represents the creditworthiness of the City of Suffolk government-issued bonds,” the release said. “It also provides assurance that the City of Suffolk has the highest quality of bonds with the least amount of risk and that both the principal and interest on the bonds will be paid on time and in full.”

In their notification, Fitch Ratings noted the city’s “unlimited legal ability to raise revenues and solid expenditure flexibility, which support a superior level of inherent budget flexibility. Healthy fiscal reserve levels support a high level of financial resilience and gap closing capacity.”

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Moody’s Investors Service’s rating said, “The city’s financial position is sound, translating to long-term stability in both reserves and liquidity, supported by management’s consistently conservative budgeting practices and adherence to formal policies. The city’s debt and pension ratios will also remain manageable given debt structuring and ongoing tax base appreciation.”

Standard & Poor’s Global Ratings service recognized, “The stable outlook reflects S&P Global Ratings’ opinion that Suffolk will maintain at least balanced financial performance, contributing to very strong reserve levels.”