City of Wilmington gets credit rating upgraded

WILMINGTON, NC (WWAY) —  The City of Wilmington got high marks for its financial strength following a recent review by major credit rating agencies, according to a city spokesperson.

Along with maintaining the current AAA rating with credit agencies Standard & Poor’s and Fitch, Moody’s upgraded their rating to Aaa. The firm noted the city’s strong financial reserves and conservative policies and practices among the reasons for the upgrade.

Wilmington issues bonds to pay for large construction projects such as the Wilmington Police Department’s $24 million headquarters facility. The projects are paid back over time, like a homeowner pays a monthly mortgage. The better bond ratings result in lower interest rates and, in turn, lower borrowing costs.

The credit rating agencies determine their ratings based on several factors, including their view of the city’s management of public dollars, the city’s overall financial health and stability, and the city’s amount of savings. According to Standard & Poor, “The stable outlook reflects our view of Wilmington’s continued strong financial performance and very strong budgetary flexibility, both of which we believe will be supported by the city’s very strong management practices.”

Click here to see the statements released by each of the rating agencies.