The City of Suffolk has learned that all three ratings agencies (Fitch Ratings, Moody’s Investors Service, and S&P Global Ratings) have affirmed the City’s AAA rating with a stable outlook. The City achieved a AAA rating from all three rating agencies for the first time in the Fall of 2019.
The AAA Rating represents the credit-worthiness of the City of Suffolk government issued bonds. It also provides assurance that the City of Suffolk has the highest quality of bonds with the least amount of risk and that both the principal and interest on the bonds will be paid on time and in full.
In their notification, Fitch Ratings noted that the City’s reserves are high relative to expected revenue volatility through the current and future economic cycles, leading to a high level of financial resilience and gap closing ability. The City’s economy was also credited for being steady as to job growth.
Moody’s Investors Service’s rating reflected the City’s sizeable tax base, healthy resident income levels, strong and stable fund balance and liquidity supported by formal fiscal policies and conservative budget assumptions, as well as manageable debt and pension burdens.
Standard & Poor’s Rating service recognized Suffolk’s very strong management, guided by robust policies and planning frameworks which have led to our consistently strong operations, bolstering our already very strong financial position. They further noted our continued economic growth spanning residential, commercial, and industrial developments which have grown the strong tax base and diversified the economy.
Suffolk is one of only three Hampton Roads cities to have achieved AAA status from all three rating agencies. Additionally, this designation continues to be shared by only a handful of other Virginia localities statewide.