Fishers has received a higher long-term bond rating that could save the municipality more than $1 million on upcoming bond agreements.
Standard & Poor’s announced Monday that it upgraded the city to a AAA rating from AA+. Analysts credited the city’s strong economy, financial policies and management, budget performance, budget flexibility and liquidity for the new rating.
"The rating action reflects our opinion of the city's very strong financial management, supported by the maintenance of its very strong reserves and liquidity,” analysts wrote. “Management has produced operational surpluses while managing capital needs due to the continuously growing population.”
Fishers is the only city in the state to receive that designation and one of only a few in the country.
“Receiving the AAA rating puts Fishers in an exclusive group, and I commend city officials for their dedication to Fishers’ financial health,” Fishers City Council President John Weingardt said in a prepared statement.
The city expects the higher rating will help it to secure lower interest rates on two upcoming bonds—$12 million for the 116th Street improvement project and matching dollars for other federally funded projects and $12 million for the State Road 37 redesign. The lower interest rates will save the city an estimated $550,000 on each one over the lifetime of the bonds.
“Fishers continues to make fiscal responsibility a top priority and this designation is a testament to our proactive approach to financial management,” Mayor Scott Fadness said in a prepared statement. “If it wasn’t already well-known, this sends a clear message to businesses, investors and residents that Fishers should be at the top of their lists.”