City of Minneapolis, MN
09/30/2024 | News release | Distributed by Public on 09/30/2024 15:06
City of Minneapolis Earns AAA credit rating for second year in a row
Bond rating agencies S&P Globaland Fitch Ratingshave assigned the highest credit rating possible to the City of Minneapolis for the second year in a row. The AAA rating to the $123.59 general obligation bonds indicates strong economic growth and revenue recovery for the City.
Bonds are expected to sell October 1. The AAA rating affirms the City's creditworthiness and provides confidence to the bond holders. This also allows the City to borrow funds to finance critical capital projects at a lower interest rate and save taxpayer dollars.
"The AAA rating reflects Minneapolis' highly productive economy and a management team that consistently has built reserves to a high level…responding to forward planning," said S&P Global Ratings credit analyst Jessica Olejak.
Minneapolis Mayor Jacob Frey praised the City's finance management team for smart fiscal decisions.
"This AAA credit rating reflects the strength and resilience of Minneapolis -- and is a testament to our City's dedicated finance team and commitment to smart fiscal management," said Mayor Frey. "This rating enables our City to fund vital projects, save taxpayer dollars and ensure Minneapolis remains a thriving economic center. Thank you to Chief Financial Officer Dushani Dye and her entire team for their continued work and leadership."
"The Minneapolis City Council, the City's Board of Estimate and Taxation, and Mayor, in partnership with our finance and budget team, work year-round to ensure the City's financial stability," said City Council Vice President Aisha Chughtai, who also chairs the Council's budget committee. "This AAA rating means we are able to make strong and sizeable investments in the infrastructure of Minneapolis."
The report also speaks to the City's "stable outlook," with continued revenue recovery and a five-year plan that shows a measured use of stimulus funds and reserves that remain above what's outlined in the City's fund balance policy.
"We are thrilled with the outcome again this year and that the agencies have confidence and validate the City's efforts to effectively plan and manage City's financial resources," said City CFO Dushani Dye.
Fitch Ratings says the AAA score incorporates "strong" demographics driven by high levels of educational attainment and a history of relatively low unemployment rates. It also credits the City's amenities, cultural attractions, calling Minneapolis the second-largest economic center in the Midwest next to Chicago.
"The city's broad and diverse economic base benefits from major employers in the stable health care, higher education and state and county government sectors," Fitch noted.