City News

The City of Tuscaloosa has received a reaffirmation of its AAA credit rating by Fitch Ratings after a review by the nationally renowned credit rating agency on November 14, 2024. This milestone designation gives the City the highest possible credit rating for municipalities nationwide.

In a media announcement, Fitch Ratings noted the City’s “growing population trend,” and “financial resilience driven by the combination of its high revenue control assessment and high expenditure control assessment, culminating in an ample budgetary flexibility assessment.” Within the review assessment, Fitch also revised the City’s rating outlook up into the stable range noting that even with future debt plans that are fueled by Elevate Tuscaloosa and the 10-Year Plan for the Water and Sewer utility, Tuscaloosa’s “manageable carrying costs and liabilities to governmental revenues” metric is classified in the strong percentile category.

“Since I was first elected Mayor, our mission and my commitment has been to ensure genuine accountability and fact-based decision-making in managing the City’s finances,” Mayor Walt Maddox said. “Receiving the highest possible credit rating from one of the top three credit agencies in the country is validation of the work of so many who believe in wisely investing the taxpayers’ money.”

Fitch Rating’s designations are based on key rating drivers including revenue framework, expenditure framework, long-term liability burden, and operating performance.