Moody’s Investors Service Affirms Wilmington’s Bond Rating To AA2

From the City of Wilmington:

April 13, 2020

Mayor Purzycki says welcoming news from Moody’s reflects City’s improved financial condition and its ability to manage COVID 19 economic uncertainties

This news release is being re-issued to correct the Moody’s bond rating which reaffirms the City’s current rating and removes a negative future financial outlook.

Mayor Mike Purzycki announced today that Moody’s Investors Services has affirmed Wilmington’s bond rating as Aa2 and has removed a negative tag, now listing the City’s financial outlook as stable. Moody’s said the rating is based on improved City financial management since 2017 and a belief that Wilmington’s strong fund reserves will enable the City to manage the economic uncertainties arising from the COVID 19 crisis.

“I am most appreciative of Moody’s review which helps us save money when we need to borrow to fund important City services,” said Mayor Purzycki. “Even with the expected coronavirus-related budget pressures we are facing, Moody’s saw how well we recovered from unanticipated budget expenditures in 2017 and has shown confidence that the same excellence in financial management will get us through the COVID 19 crisis. We are heading into a tough period in a stronger fiscal position, and for that I am very grateful.”

The Mayor also offered his thanks today to the City’s financial management group which includes Finance Director Brett Taylor, Budget Director Rob Greco, City Solicitor Bob Goff and Treasurer Velda Jones-Potter as well as his Department Directors who are accountable for each of their portions of the budget. Mayor Purzycki also expressed his appreciation to Council President Hanifa Shabazz and Finance Committee Chair Charles “Bud” Freel for working with the Administration over the past three years to control spending, protect sources of revenue and build fund reserves. The Mayor noted that he only had to ask for one tax increase in four years and with that, Wilmington’s financial house is stronger today than in many years because the City’s financial management group has done a great job.

The Mayor said Moody’s also offered advice on how to further improve the City’s bond rating which includes maintaining or increasing City budget reserves and by growing the local economy by improving the income levels of City residents. Mayor Purzycki said both goals could be harder to achieve as the City’s battles COVID 19, but said Wilmington can handle extreme challenges, especially when everyone works together.

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