PITTSBURGH, PA (October 19, 2021) Mayor William Peduto’s Office and the Office of Management and Budget today released information on improving the city’s bond credit rating. The City’s tax planning and resilience strategy over the past seven years have transformed a structurally deficient budget into a model of fiscal strength, including strong credit scores that allow the City to borrow funds from the budget. capital assets at a better rate to save taxpayer dollars.
“Just like individuals, having a good credit rating can help get better rates or higher limits for cities to issue bonds for critical infrastructure improvements,” said Mayor Peduto. “Pittsburgh has worked hard over the past few years to improve its credit ratings and outlook so that we can continue to put money into reserves, invest in our pension fund and also pursue projects that are important to maintain. and support our city and our communities. ”
Mayor Peduto has long led efforts to improve the city’s financial management, including during his tenure on city council. His continued advocacy included sponsoring the legislation to bring the city into state oversight of Bill 47, helping draft the three Bill 47 stimulus plans, and ensuring stability and development. ‘continued fiscal growth thanks to the codification of financial reforms. Its legacy of financial vitality practices enabled the City to avoid financial difficulties after the release of Bill 47 and the credit ratings of the City’s bonds strengthened.
The success of the City’s financial management has been recognized by independent financial rating agencies as the City’s ratings have improved over the past seven years. In 2021, S&P Global Ratings gave Pittsburgh strong creditworthiness despite the pandemic:
Bond rating agencies have praised the City’s management of its budget before and during the COVID-19 pandemic. A credit rating of “A” indicates above average creditworthiness compared to other municipal or tax-exempt issuers or issues in the United States, while “AA” indicates very good creditworthiness.
According to S&P Quality Scores, the City of Pittsburgh was upgraded, and since maintained, from above average to high quality in 2017, indicating that financial guarantees and practices implemented by the administration Peduto improved and continued to improve the financial strength of the City.
Ratings provided by Fitch Credit Rating, another independent financial rating agency, reflect the increased strength of the City’s increased creditworthiness, which moved the City from a higher average rating to a high-quality credit rating between 2012. and 2021.
Although Fitch Credit Rating recognizes the current strength of the city’s credit rating, a negative outlook has been cast for 2020 and 2021 as five-year financial forecasts suggest financial strains from the pandemic will continue to threaten city budgets. . Mayor Peduto’s financial planning and City Council leadership in funding the US bailout plan will support projected deficits for city services and staff through 2023. To maintain a strong financial position, the city must control spending while focusing on adding jobs to Pittsburgh’s new economy and growing residents with additional housing stock. Without spending control and significant revenue growth, the City will once again find itself in financial difficulty.
This press release was produced by the city of pittsburgh. The opinions expressed here are those of the author.