The City of Durham has hit a financial high note, earning a AAA rating on its general obligation bonds from all three major credit rating agencies. Fitch Ratings, Moody’s, and S&P Global Ratings have each awarded Durham their highest possible assessment. With these affirmations in place, the city is well-positioned to implement voter-approved capital improvements totaling $200 million over a two-year period, according to a recent announcement from the City of Durham.
This exclusive AAA status places Durham in an enviable position of financial security and borrowing leverage – one of only 32 cities across the United States, and one of eight within North Carolina, to achieve such stellar ratings from all three agencies. In the words of Durham City Manager W. Bowman Ferguson, "It’s not an easy accomplishment, but it allows us to borrow money at the lowest interest rates to enable us to spend millions to upgrade our roads, improve our neighborhoods, and build facilities and other vital infrastructure that supports our quality of life and makes us a great place to live, work, and play," as per the City of Durham's announcement.
Investors can now look to Durham projects with increased confidence, drawn by the promise of stability and low risk reflected in the city's high bond ratings. Ratings from these agencies are critical, as they inform potential investors about the attractiveness of bond issues backed by the city's credibility and play a key role in determining interest rates and investment returns. According to an official statement from the City of Durham, this strong creditworthiness follows the approval of two bonds in the November 2024 election, allowing the city to borrow up to $200 million for infrastructure improvements.
With the funding, specific projects are already earmarked for advancement. Strengthening the city's infrastructure, the bond will cover road resurfacing, repairs, and paving of dirt streets. Sidewalks across the city are set for repairs and expansion, and parks, including Long Meadow and East End, are on schedule for upgrades. Moreover, the installation of a new water park at Merrick-Moore Park is sure to add to the recreational offerings for residents.
