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FOR IMMEDIATE RELEASE
September 20, 2024 |
Olga George
Press Secretary
Mayor's Office
olga.george@pittsburghpa.gov
412-627-0679 |
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Fitch Ratings Upgrades City of Pittsburgh’s bond rating from AA- to AA, acknowledging City’s Stable Financial Outlook
The improvement comes even as assessment appeals dampen revenue projections, indicating market confidence in Gainey Administration’s financial management
Pittsburgh, PA – Today, Fitch Ratings announced that it has upgraded the City’s general obligation bond rating from ‘AA-’ to ‘AA’. This improvement in the City’s credit profile signals to investors that the City’s financial position remains stable and capable of weathering the challenges anticipated over the next two years, even as assessment appeals have placed downward pressure on projected revenues.
The upgrade in the City’s rating comes as Fitch Ratings implements its new “U.S. Public Finance Local Government Rating Criteria.” The updated rating system places a higher emphasis on the City’s financial resilience, budget flexibility, and a diversified economy.
"Our set processes for financial and budgetary oversight, coupled with our ability to raise revenue if needed, pushed us into the next rating category under the new rating criteria. Finance and OMB answered several inquiries from Fitch this week and we look forward to strengthening our relationship even further,” said Director of Finance Jennifer Gula.
The future of City finances has been a hot topic in recent months, with leadership acknowledging lean years ahead. Though preliminary revenue forecasts show modest declines in fiscal 2024 and 2025, Fitch anticipates the City will make necessary spending adjustments to ensure expenditures align with revenue projections. Fitch also expects the City to continue adhering to its fund balance policy.
“We have been steadfast in our responsible stewardship of city finances, with the understanding that there are some lean years ahead,” said Mayor Ed Gainey. “This rating upgrade further solidifies that we are prepared and have positioned ourselves to be financially resilient as we move towards the future. I look forward to presenting a preliminary budget at the end of the month that shares my commitment of maintaining our financial footing.”
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