For the second month in a row, the city of Knoxville has gotten good news from one of the major credit rating agencies.
Fitch Rating Service has raised the city’s rating to AAA, the highest rating offered by Fitch. The city’s previous rating was Aa+.
This AAA rating “apparently marks the first time that the City of Knoxville has ever held the highest rating from one of the major bond rating agencies,” according to the press release.
Last month Moody’s Investors Service raised its assessment of the city’s credit worthiness to Aa1 from Aa2.
Higher bond ratings mean the city can borrow money at a lower interest rate, thus saving taxpayers money.
“We’re pleased with Fitch’s decision and I think it’s reflective of the city’s strong financial performance during very challenging economic conditions,” Mayor Bill said in a statement. “It’s the result of a lot of hard work by the administration and City Council to carefully manage the city’s resources.”
“It’s always nice when an organization like Fitch recognizes that hard work and we’ll continue to practice the disciplined budgeting that got us to this point,” he added.
The mayor’s comments may be a bit over the top, but to be expected from a man running for governor.
Whether the city’s credit ratings provide more than minimal help for Haslam’s campaign is doutbful. But the improved ratings are good news for city taxpayers.
Read the city’s press release here.