S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings have affirmed the City of Richmond’s ratings at AA+, Aa1, and AA+, respectively, according to City officials. The rating agencies commended Richmond for its very strong economic growth, attention to increasing reserves, and sound and conservative financial management and policies.

In addition to its rating affirmation of AA+, S&P Global Ratings upgraded Richmond’s rating outlook to positive from stable and assigned its ‘AA+’ rating to the city’s approximately $64 million series 2024 GO bonds, City officials an- nounced Jan. 11.

With the positive outlook, the city is on the precipice of achieving its goal of a AAA rating, city officials said. “The positive outlook reflects Richmond’s very strong economic growth, with assessed values rising 43% since fiscal 2020, and strong financial management, with available fund balance increasing by 58% over the same time period to 30.2% of expenditures, which S&P Global Ratings considers very strong.”

Richmond Mayor Levar Stoney said getting Richmond’s fiscal health in order long has been a priority of his tenure.

“The upgrade of Richmond’s outlook is a clear indication that the city continues to make progress and is headed in the right direction,” said Mayor Levar Stoney. “I am grateful for all the hard work from city staff and our public and private partnerships that helped make this possible. With much work ahead, we remain encouraged that Richmond is on an upward trajectory.”

Having a favorable credit rating is crucial for Richmond to borrow money at the lowest interest rates possible. This, in turn, results in spending less on borrowing costs, saving taxpayer dollars.

Credit ratings for both corporations and government agencies are similar to a credit score. The three primary rating agencies are S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings. These agencies offer impartial evaluations of a bond issuer’s financial strength and their ability to repay a bond’s principal and interest.