Moody's Rating Agency has awarded the city of Scottsdale their highest possible rating for Excise Tax Revenue Bonds, upgrading the designation from Aa1 to Aaa, as of Aug. 29. This prestige not only reflects Scottsdale's robust financial standing but also marks an ascent in confidence regarding the city's commitment to fiscal prudence and economic stewardship. Scottsdale's General Obligation Bonds already boasted a Aaa rating from Moody's, which just serves to bolster the city's reputation for financial solvency, as per the City of Scottsdale.
This rating upgrade comes on the heels of Moody's review that began in July, applying their revised methodology aimed to more accurately assess the creditworthiness of U.S. cities and counties. Scottsdale currently manages $351 million in outstanding Excise Tax Revenue Bonds. To unsurprisingly highlight the credibility of the city's financial trajectory, Fitch Ratings, on Sept. 6, simultaneously affirmed Scottsdale's AA+ rating on its Issuer Default Rating (IDR) and cemented the Municipal Property Corporation's (MPC) excise tax revenue bonds with a Rating Outlook that was revised to Positive from Stable. This shift suggests that Scottsdale is poised to maintain or to even improve upon its strong fiscal positioning.
S&P Global Ratings has also given Scottsdale a AAA rating across all outstanding bonds and financial obligations. These consistent high marks from three major credit rating agencies underscore the city's financial resilience and the confidence of experts in Scottsdale's economic governance.
In a statement obtained by Scottsdale's official news release, City Treasurer and Chief Financial Officer Sonia Andrews expressed satisfaction with the upgrades. "We are very pleased to receive these upgrades from Moody’s and Fitch. The upgrades by the rating agencies reflect the city’s overall financial health, and Scottsdale’s commitment to maintaining strong fiscal management and financial excellence," Andrews said.
