Louisville’s strong economy, sound management leads to positive credit ratings from ‘Big 3’ agencies
Three nationally recognized credit rating services are citing Louisville Metro’s strong economy, sound management, and budgetary flexibility as the basis for again granting positive bond ratings.
The new acknowledgments from “The Big Three” credit agencies — Fitch Ratings, Inc., Moody’s Investors Service, and Standard & Poor’s — strengthen Metro’s position to invest in the city. The investments complement the $11 billion in capital investments since 2014 from other sectors to further grow the local economy.
“We’re seeing economic momentum that’s unprecedented in Louisville’s modern history, fueled by public and private investments in every corner of the city, from the new South Central Regional Library in Okolona to the Passport headquarters in west Louisville,” Mayor Fischer said. “Like a smart business, we have to keep making good investments to build on that momentum. The new positive ratings give us the opportunity to do that.”
Louisville Metro’s bond sales will include $66.5 million to fund investments approved in the fiscal year 2018 capital budget, such as a new Northeast Regional Library, technology upgrades, and street improvements. A second sale of $5.1 million in taxable bonds will fund affordable housing through the Louisville Creating Affordable Residences for Economic Success (CARES) program.
Fitch again assigned and affirmed its highest rating of AAA for Louisville.
In their report, Fitch stated that the “’AAA’ ratings reflect the metro government’s low long-term liabilities, strong revenue and expenditure frameworks, and Fitch’s expectation that the metro government will maintain a high level of financial flexibility throughout economic cycles.”
S&P affirmed Louisville Metro’s AA+ rating, reporting a stable outlook.
S&P highlighted Metro’s economy, budgetary flexibility, and “strong management, with ‘good’ financial policies and practices” in their report. S&P also stated that the stable outlook reflects an expectation that Metro “will maintain its very strong liquidity profile and strong budgetary flexibility, budgetary performance, and management profile.”
Moody’s affirmed its Aa1 rating for Metro Louisville.
Louisville Metro’s Chief Financial Officer Daniel Frockt said: “Mayor Fischer’s leadership in balancing a strong financial foundation with strategic investments has been a key ingredient in the economic development we have seen to date, and the progress that our future holds.”
Louisville Metro’s bond sales are scheduled for October 10, 2017.