Fitch Upgrades Northport's Bond Rating To AA+ As City Eyes Major Recreation Projects

NORTHPORT, AL — The City of Northport on Monday announced that Fitch Ratings has assigned the city with a AA+ bond rating.

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This will give the city access to $45.275 million in general obligation warrants, which represents the second bond upgrade in less than two years for Northport.

City Council Pro Tem and District 1 Councilwoman Christy Bobo chairs the council's Finance Committee and told Patch the city could pay its current liabilities almost five times over with its available cash.

"Only about 5 percent of our total expenditures is used to pay debt," she explained. "Our net position has steadily increased over the past few years. In the last two years, we have paid off external and internal debt. We are in a strong financial position. We are currently in a better position than our auditor has ever seen Northport."

Bobo went on to cite the financial stability as a team effort, citing the trip taken by several officials to New York City in recent weeks to meet in-person with officials from Fitch.

"By making the effort to meet in person we were able to convey our passion and plans alongside the hard data in our presentation," she said. "I think in this instance it paid off for our city in a great way, earning a ratings increase to AA+."

City officials expect the general obligation warrants to sell the week of March 27, with proceeds then being used for capital interest and to finance three large-scale recreational projects, including a water park on McFarland Boulevard, an adventure sports park on Rose Boulevard and extensive upgrades to Kentuck Park.

What's more, the rating agency upgraded Northport's Issuer Default Rating and the ratings on the city’s outstanding series 2021A general obligation warrants to AA+ from AA.

The Northport City Council will meet Monday night at 5:30 p.m.

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