Austin, TX — The City of Austin is pleased to announce that Fitch Ratings has upgraded the City of Austin’s credit rating to ‘AAA’, the highest possible rating. This applies to both the City’s overall financial standing and a $810 million bond issuance planned for early September. This upgrade reflects Fitch’s confidence in Austin’s long-term financial health.

“This upgrade to ‘AAA’ is a powerful endorsement of our city’s financial stewardship and long-term planning,” said Ed Van Eenoo, City of Austin Chief Financial Officer. “It reflects our commitment to responsible governance and positions us to continue investing in Austin’s future.”

Fitch’s decision is based on several key strengths:

• Pension reform: Recent legislative changes to the firefighter pension plan have made the City’s long-term financial obligations more manageable. These changes allow the City to follow a more sustainable funding plan for the pension system.
   
• Financial resilience: Fitch recognized the City’s consistency in maintaining healthy reserves and noted the strength of Austin’s reserve policy. The City remains dedicated to meeting and upholding this policy as part of its broader approach to long-term financial stability. 
   
• Economic strength: Austin’s economy is diverse and growing, with a highly educated workforce and stable job opportunities. The City plays a major role in the regional economy, which contributes about 1% to the entire U.S. economy.
   
• Smart financial management: Even with plans to issue more debt in the future, Fitch believes the City will continue to manage its finances responsibly.

The $810 million in bonds will fund a range of public improvements and refinance existing debt for interest savings. The bond package includes public improvement bonds, certificates of obligation, and public property finance contractual obligations, both taxable and tax-exempt. The sale is scheduled for September 2025.

This top rating reaffirms the City of Austin’s sound financial management and long-term strategic planning. With this upgrade, the City is well-positioned to access capital at lower interest rates, delivering significant savings to taxpayers. It also enhances Austin’s ability to invest in critical infrastructure and services while maintaining the flexibility to respond to future economic challenges. As the City continues to grow, this recognition reinforces Austin’s dedication to building a resilient, inclusive, and financially sustainable future.