Wall Street has reacted favorably to recent developments and the city’s accomplishments in advancing the Clean Water Atlanta program. Each of the three major credit rating firms has upgraded their ratings or outlooks on Atlanta’s Water and Wastewater bonds.
Standard & Poor’s has increased their rating of the city’s bonds to “A” from “A-“, with a stable outlook.
Fitch Ratings has upgraded their outlook on the city’s bonds from negative to stable. The underlying rating of BBB+ remains unchanged. Fitch also improved their outlook on the city’s General Obligation Bonds, rated “AA-“, from negative to stable.
Moody’s Investor’s Service reaffirmed their rating of Baa1 on Atlanta’s bonds, while upgrading their outlook from negative to stable.
Each of the rating agencies acknowledged the substantial progress that Atlanta has made in funding the necessary Water and Wastewater system improvements, and in carrying out the complex construction projects required.
In response to the rating agencies actions, Mayor Shirley Franklin said “We are gratified to receive this important validation that we are on the right track and making progress toward our goals. We will continue to meet our requirements and targets, and feel confident that we will earn the restoration of higher ratings for our bonds in the near future.”
Janice Davis, the city’s Chief Financial Officer, estimates that the upgraded ratings and outlooks will save the city approximately $6.5 million in interest and insurance costs on the upcoming sale of Water and Wastewater bonds.
For more information about the programs and services of the City of Atlanta, watch City Channel 26.