Citing the City of Knoxville’s “very strong management” and “strong budgetary performance,” Standard & Poor’s has affirmed the City’s AA+ bond rating.

Combined with Moody’s Aa1 rating and Fitch’s AAA rating, the City of Knoxville is benefitting from its highest-ever credit ratings. The strong ratings allow the City to pay less money in interest for bonds to finance one-time capital projects, such as the Public Works Service Center, Lakeshore Park upgrades and South Waterfront infrastructure.

Jim York, the City’s Finance Director, said a single jump up in a bond rating grade can save the City up to $200,000 a year in interest payments.

“Our bond ratings are up four grades in the 29 years I’ve been here,” York said. “That’s steady, significant improvement, and it reflects solid financial management by Mayors, City Councils and staffs.”

S&P noted Knoxville’s strong local economy as well as City government’s “conservative budgeting and effective management of expenditures” that have resulted in operating surpluses and healthy reserve funds.

“Receiving S&P’s AA+ rating reaffirms that we’re managing our finances well,” Mayor Madeline Rogero said. 

“Historically high bond ratings are the result of years of disciplined, careful stewardship of public dollars. The ratings allow the City to continue to strategically make impactful investments while delivering day-to-day quality, cost-effective City services.”