Austin earns Moody's highest Aaa credit rating

Austin, TX - Moody’s Investors Services has upgraded the City of Austin’s issuer credit rating to Aaa — the highest possible distinction. Austin now holds the highest credit rating attainable from all three major agencies including Moody’s, S&P Global, and Fitch Ratings. This rare and prestigious achievement reflects years of disciplined financial management, thoughtful long-range planning, and a sustained commitment to maintaining strong reserves. Moody’s announced the upgrade on July 10.

“Achieving triple-A status from all major rating agencies is a testament to the City Council’s fiscal discipline, strong governance, and strategic vision,” said Ed Van Eenoo, Chief Financial Officer, City of Austin. “This milestone reflects the City’s prudent management of financial resources and underscores our continue commitment to managing growth responsibly.” 

Moody’s highlighted several reasons for the upgrade, including Austin’s robust reserve levels, conservative budgeting practices, and a strong, diversified economy. Recent state-approved pension reforms were also a key contributor, helping Austin’s pension plans achieve actuarially sound funding models and a closed 30-year amortization schedule. These changes significantly strengthened Austin’s long-term financial outlook. 

With the triple-A recognition, this signals to investors that Austin is a stable, low-risk municipal borrower, ensuring continued access to capital even amid economic fluctuations. It affirms that Austin’s financial trajectory is guided by careful stewardship, transparent governance, and a vision for long-term resilience. 

“As Austin continues to grow, our financial strength becomes even more vital. This recognition represents more than a financial benchmark, it has meaningful, tangible benefits to our community. With these distinguished ratings, we can borrow money at the lowest interest rates available, saving millions of taxpayer dollars over the life of major infrastructure projects,” said Austin City Manager T.C. Broadnax. “This means that more dollars can go directly to things like improving roads and expanding mobility options without increasing the financial burden on our community.” 

The Aaa rating from Moody’s affirms that Austin’s financial position remains stable and well-managed, supported by thoughtful planning and strong long-term outlooks. To learn more, review Moody’s rating action news.