The city of Boerne was recently notified by Fitch Ratings of an upgrade to its credit rating from AA to AA+, reflecting the city’s strong fiscal health and management practices.
The upgrade of the city’s Issuer Default Rating (IDF) to AA+ keeps the city in the “high grade” range and just one step below a top rating of AAA, which is considered “prime.” “One of my primary goals when I came to Boerne in 2020 was to upgrade the city’s credit rating to AAA,” City Manager Ben Thatcher said.
“This is a big step toward that goal, and I couldn’t be prouder of Finance Director Sarah Buckelew and her team, in addition to all the other departments, whose dedication to fiscal excellence made this possible,” Thatcher said.
Fitch Ratings reevaluated its approach to municipalities in recent years with an eye toward more conservative evaluations in part because of the volatile financial environment during and after the pandemic.
The upgraded rating has several sev key benefits for the city, such as lower borrowing costs and reduced interest rates on future debt issuances for community and public safety enhancements like the voter-approved bond projects currently underway.
The new rating also affirms the city’s ability to manage its finances responsibly and sustain growth.
The agency found Boerne’s Boerne credit rating outlook to be stable, meaning no major changes are expected in the near term.
“They spoke highly of how we are managing our financial systems and our deliberate, strategic approach to planning for our community’s growth and the services we provide, which was demonstrated throughout the budget development process,” Thatcher said.
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