Maintain the Bond Rating at or above AA
Memphians want to invest their talent and resources in a city with a future. To secure that future, the city needs to carefully steward its financial resources. A city’s long-term viability is negatively impacted when it isn’t able to meet its obligations. Its credit rating can also drop, making it harder for the city to borrow money to fund public projects and infrastructure work. The City's goal is to maintain a bond rating of at least AA (S&P) and Aa2 (Moody's).
Rating agencies assign credit ratings to a government based on their analysis of that government’s ability to pay its debts. Moody’s and Standard & Poor’s (S&P) are the two leading rating services that rate the City of Memphis. The City works directly with them each year to provide the information they need to determine ratings and to monitor how the City’s financial decisions would be likely to affect its credit rating in the future. To assign ratings, Moody’s and S&P evaluate more than 20 different elements of a City’s finances. This comprehensive assessment serves as a broad-based, high-level measure of a city’s financial stability.