Chattanooga City Council members were informed Tuesday that the city will continue to boast an AA+ bond rating from Fitch, a prominent global rating agency.
Andrew Kean, chief operating officer for the city, informed the council at the end of their regular meeting. Kean described his report to the council as "good news."
According to a news release from Fitch, the city's rating outlook is stable. That position puts Chattanooga in a more attractive position to issue bonds and also helps minimize the city's overall interest in those bonds.
The agency listed "sound financial management, encouraging employment prospects, below-average economic indicators and moderate debt burden" as factors contributing to its rating. Additional elements taken into account by the agency include internal factors like budgeting practices and pension costs, as well as factors external to the city, including housing vacancy, unemployment and overall economic diversity.
In a news release issued Tuesday by Mayor Andy Berke's office, Kean said the city was extremely pleased to report the affirmation of Fitch's rating.
"We work very diligently to be responsible with taxpayer dollars," Kean said. "People across the country use this information to determine the fiscal health of the city, and we are excited to report that the city is in strong financial shape."
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