Fitch Ratings has assigned the City of Richmond a “AAA” bond rating — a designation Mayor Levar Stoney called “a game changer for Richmond.”
The city hosted a press conference to share the news on Thursday, May 23. City leaders, employees, and press gathered at the City Hall Observation Deck to hear the announcement.
The new rating means the city should be able to borrow money at the lowest interest rates possible. Deputy Chief Administrative Officer Sabrina Joy-Hogg compared the “coveted status” to personal finances.
“Think of your personal credit score — the higher your score, the lower your interest when you borrow money,” Joy-Hogg said. “It’s the same for our city.”
Council President Kristen Nye spoke to the city’s goal to improve stability and efficiency since she took office in 2017. The rating should indicate good news for the future of the Diamond District project, which is primed to break ground in June.
Borrowing at lower rates should also allow more money to be directed towards other city projects, including improving roads, parks, libraries, schools, and other city facilities.
Fitch Ratings is one of the companies that makes up the “Big Three” of credit rating agencies. S&P Global and Moody’s have Richmond at levels right below triple — “AA+" and “Aa1,” respectively.
