Credit Rating Report
Victoria’s Bond Rating Reaffirmed at AAA
S&P Global Ratings (formerly Standard & Poor’s) reaffirmed the City of Victoria’s AAA bond rating in August 24, 2023 and evaluated the outlook as stable.
The report cites the following factors in its assessment of the city’s ratings.
S&P Global Ratings (formerly Standard & Poor’s) reaffirmed the City of Victoria’s AAA bond rating in August 24, 2023 and evaluated the outlook as stable.
The report cites the following factors in its assessment of the city’s ratings.
- Very strong economy, with multiple lakes within the city's boundaries and direct access to the regional Twin Cities economy, aiding in attracting high income residents and contributing to extremely strong market values;
- Very strong management, with detailed financial policies and plans including a formalized long-term financial plan that looks out 15 years and a rolling five-year capital improvement plan, with a strong institutional framework score;
- Consistently positive budgetary performance supported by growing property tax and building permit revenues, with a policy to maintain at least 30% of expenditures in the general fund balance at all times;
- Adequate debt and contingent liability profile, with higher-than typical debt plans to pay for a new $16 million fire station, with modest pension costs, although funding levels worsened in 2022 due to low investment performance, but with likelihood of meaningful cost acceleration.