Macon-Bibb’s credit rating improves

On September 3, 2024, Fitch Ratings announced it upgraded the following ratings on for Macon-Bibb to 'AA' from 'AA-', gave it a Rating Outlook of Stable, and removed the ratings from under criteria observation.

• Issuer Default Rating (IDR);
• GO sales tax bonds;
• Macon-Bibb County Urban Development Authority (UDA) revenue bonds;
• Macon-Bibb Industrial Authority (Bass Pro and Sofkee Park Projects) revenue bonds.

"This is just another example of how we and our partners are ensuring we are good stewards of the taxpayers' money and being fiscally stable now and in the future," says Mayor Lester Miller. "Thanks to the support of our community, we've been able to make big strides in our projects, which have allowed us to reduce the millage rate, increase our budgets for things like public safety and recreation, and improve the quality of life for everyone."

"The ratings incorporate the county's financial resilience assessment of 'aaa', which is based on its 'ample' level of budgetary flexibility given high revenue and expenditure controls, and Fitch's expectation that the county will maintain unrestricted general fund reserves equal to at least 7.5% of spending," the company wrote in its release.

It also noted that Macon-Bibb's financial resilience is driven by the combination of its 'High' revenue control assessment and 'High' expenditure control assessment, culminating in an 'Ample' budgetary flexibility assessment.

"I want to commend our Commissioners for working so diligently on oversight of our budget and reducing our millage rate, and our Finance and Budget teams for the hundreds of hours they put in every year to keep us in a stable and growing position," adds Mayor Miller.

Credit ratings for governments are just as important as a person's individual credit scores because they are objective and independent opinions on the relative credit risk associated with the ability and willingness of a government or person to meet its financial obligations in full and on time. People should pay close attention to its government's credit rating because it has a direct impact on the decisions government officials have to make. Based on these ratings, governments can have higher or lower payments on bond issuances and other purchases, and the revenue to cover those payments comes from property taxes, sales taxes, and utility fees. The lower the rating, the higher the payment, which means fewer funds for daily operations and potentially even the need for more revenue.

These ratings are also used by employers and major industries when deciding whether to establish or grow their businesses in an area because the report covers a wide-range of financial characteristics of governments such as its liquidity and ability to manage through a crisis, such as the current COVID-19 pandemic. The report also looks at ESG (environmental, social and governance) factors that can have positive and negative credit impacts on a government.

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