City of Lubbock Touts High Bond Ratings for Both The City and Water System

Friday afternoon, the City of Lubbock announced it has received strong bond ratings from both Fitch Ratings and S&P Global Ratings. The City of Lubbock maintained a AA+ bond rating from both Fitch and S&P. Meanwhile, the City of Lubbock Water and Wastewater System maintained a AA- bond rating from the same two services. City officials noted that, "Fitch assigned an upgraded positive outlook and S&P kept the system’s outlook at stable".

The rating reflects the opinions of both S&P Global Ratings and Fitch Ratings agencies. Each agency uses independent methodology to evaluate a municipality’s credit worthiness. S&P noted the city “has a history of maintaining a very strong financial position that is supported by strong financial management practices and a growing, diversified economic base.” While Fitch said “the bond rating reflects the city’s high level of demonstrated and anticipated operating financial resilience through the current economic downturn.”

"The City is in its third year since making strategic changes to bring about greater fiscal responsibility and an improved financial position," said Lubbock City Manager Jarrett Atkinson. "The rating actions by S&P and Fitch reaffirm that we are on the right path and need to stay the course.”

“Recently, both S&P and Fitch Ratings put all public finance sectors on negative outlook with many municipalities facing downgrades to their credit ratings," said City of Lubbock Chief Financial Officer Blu Kostelich. "To have both of these independent agencies affirm our ratings without putting the City on negative outlook speaks highly to the financial position of the City of Lubbock. The changes implemented by this organization over the last few years will continue to benefit our residents and businesses.”

Additional information about the City of Lubbock's various bond ratings can be found at this link.