The administration of Mayor Greg Fischer is touting the positive bond ratings that three major credit rating agencies have given to city government recently, citing Louisville’s “strong economy, sound management, and budgetary flexibility.”
Fischer’s press release on Tuesday said the recent positive reviews from Fitch Ratings, Moody’s Investors Service and Standard & Poor’s “strengthen Metro’s position to invest in the city.”
“We’re seeing economic momentum that’s unprecedented in Louisville’s modern history, fueled by public and private investments in every corner of the city, from the new South Central Regional Library in Okolona to the Passport headquarters in west Louisville,” stated Fischer. “Like a smart business, we have to keep making good investments to build on that momentum. The new positive ratings give us the opportunity to do that.”
City government’s bond sales are scheduled for next week, which the release said would include $66.5 million to fund investments approved in the 2017-2018 fiscal year capital budget passed this summer.
“Mayor Fischer’s leadership in balancing a strong financial foundation with strategic investments has been a key ingredient in the economic development we have seen to date, and the progress that our future holds,” stated the mayor’s chief financial officer Daniel Frockt in the same release.
While Louisville’s city government continues to maintain a high credit rating, the same has not been true of state government, as it struggles with its significant public pension crisis. In July, Moody’s downgraded the state’s bond rating once again, citing Frankfort’s significant revenue shortfall and the pension issue.