Fitch Rating Agency Reaffirms Wilmington’s AA- Bond Rating

From the City of Wilmington:

October 5, 2020

Mayor Purzycki says the Fitch review reflects the City’s ongoing efforts to regulate revenue and expenditures while building a more solid City financial base

Fitch Ratings, a global leader in credit rating and research, has reaffirmed Wilmington’s AA- (double A minus) bond rating and has also posted a stable bond rating outlook for the City. Mayor Mike Purzycki said Fitch’s favorable bond rating review affirms his Administration’s efforts to regulate revenue and expenditures to ensure that Wilmington can manage both anticipated and unanticipated financial issues.

The Mayor said Wilmington’s stable financial condition is more critical than ever as the City continues to cope with the economic consequences of COVID-19. “Fitch’s bond rating review indicates that the management of Wilmington’s finances, revenue growth and pension system, continues to be very effective,” said Mayor Purzycki. “In fact, Fitch said in its review that the City’s long-term liability burden will likely remain moderate due to our ability to manage our debt and our decision to fully fund annual contributions to City pension plans. The Mayor said Fitch took note of what it referred to as Wilmington’s sound financial cushion, which it said was bolstered through the City’s significant revenue control and expenditure flexibility.

The Fitch reaffirmation comes in advance of the City’s upcoming credit rating reviews with Standard and Poor’s and Moody’s. The Mayor today thanked his Chief of Staff Tanya Washington, Finance Director Brett Taylor, Budget Director Rob Greco, Solicitor Robert Goff, Human Resources Director Charlotte B. Barnes for their work to produce a solid bond rating.

The Mayor said the Fitch Ratings review is a reminder that everything the City does related to its finances has a lasting effect. He said this includes having the discipline to approve expenditures only when it’s economically feasible as well as to preserving and developing neighborhoods and businesses as aggressively as possible, which adds to the stability to the City’s economic base.

This press release was produced by the City of Wilmington. The views expressed here are the author’s own.