Fitch Reaffirms Knoxville's AAA Rating for Bonds

Communications Director

Eric Vreeland
evreeland@knoxvilletn.gov
(865) 215-3480

400 Main St., Room 654A
Knoxville, TN 37902

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Fitch Reaffirms Knoxville's AAA Rating for Bonds

Posted: 02/02/2017
Fitch Ratings has reaffirmed its AAA rating – the highest rating possible – on three series of outstanding general obligation bonds of the City of Knoxville. The series total $96.7 million in bonds.

According to Fitch Ratings, in citing its key rating drivers: “The AAA … bond ratings reflect a combination of the city’s historically strong revenue growth prospects, … manageable long-term liability burden and solid gap-closing capacity.”

Fitch Ratings also cites Knoxville’s “diversified economy” and notes that “revenue growth has exceeded both inflation and GDP levels over the past 10 years through 2015.”

The analysis finds the city’s pension plan to be satisfactorily funded and notes the City’s strong financial management practices, including its adequate reserve funds to assure financial resilience.

“We aim to deliver quality City services while strategically investing to leverage private investment,” Mayor Madeline Rogero said. “Receiving Fitch’s AAA rating reaffirms that we’re managing our finances well.”