Moody’s boosts Fresno’s credit ratings

Moody’s Investors Service has upgraded Fresno’s general obligation bond rating to A3 from Baa1.

Moody’s upgraded various lease-backed bonds one notch. Some of these bonds went to Ba1 from Ba2. Others went to Ba2 from Ba3.

A3 is investment grade. Ba1 and Ba2 are at the top end of speculative grade.

Moody’s also revised the city’s issuer rating to stable from positive. Moody’s outlook on the city’s other obligations is positive.

“The A3 issuer rating represents what the city’s general obligation bond rating would be if the city had outstanding GO debt,” Moody’s said.

Moody’s said ratings could go up if, among various factors, operating surpluses come in as expected and City Hall meets its reserve targets. Economic fallout from the drought is among the risks to Fresno’s financial health.

Mayor Ashley Swearengin was pleased with Moody’s announcement.

“Our balanced approach to managing our budget, eliminating our debt, building our reserve and steadily improving service levels has built Fresno’s new-found reputation as a city with an improving picture that is prudently managed,” Swearengin said.

“It’s especially gratifying to note Moody’s recognized our efforts to build a reserve, pay off negative fund balances and modernize our land-use and zoning laws as part of our overall economic development plan. These initiatives are already paying dividends for Fresno.”

This story was originally published September 16, 2015 at 12:26 PM with the headline "Moody’s boosts Fresno’s credit ratings."