The City seeks to maintain the highest possible credit ratings for all categories of short-term and long-term debt instruments without compromising the delivery of basic City services and achievement of City policy objectives. Ratings are a reflection of the general fiscal soundness of the City and the capabilities of its management. By maintaining the highest possible credit ratings, the City can issue its debt at a lower interest cost.
To improve creditworthiness, the City is committed to prudent financial management, capital planning, and long-term financial planning. The City recognizes that external economic, natural, or other events will affect the creditworthiness of its debt. Each proposal for additional debt is analyzed for its impact upon the City’s debt rating on outstanding debt.
Credit ratings issues by the bond rating agencies are a major factor in determining the cost of borrowed funds in the municipal bond market. The concept of debt capacity, or affordability, recognizes that the City of Fresno has a finite capacity to issue debt at a given credit level. The City of Fresno has enjoyed consistent improvement in both its bond ratings and ratings outlook over the past few years.