Huntsville Maintains Perfect Financial Scores From Credit Rating Agencies

The City of Huntsville has been awarded the highest credit rating for the 16th year in a row. 

The nation’s top two credit rating agencies, Moody’s Investor Service and Standard & Poor’s Rating Services, have both assigned their highest rating to Huntsville.

Similar to an individual’s FICO score, these assessments evaluate the City’s financial reliability. Huntsville’s high scores indicate the City’s creditworthiness as a borrower. 

“Huntsville’s local economy has been exhibiting strong, continuous growth with expansions in major businesses and residential developments citywide,” said S&P Global Ratings credit analyst Karolina Norris. “The city has had multiple years of operating surpluses, and it expects these trends to continue in fiscal years 2024 and 2025, although at a smaller rate.”

Earning this designation positions Huntsville in the top 1% of the nation’s cities and counties. 

“These ratings are outstanding news for the City and Huntsville residents,” Mayor Tommy Battle said. “It confirms that the City is a good steward of the public’s money and underscores the City’s economic strength. It’s also a reflection of the hard work by our Finance Department, led by Director Penny Smith, and all of our department heads to ensure we are making wise financial decisions.” 

One significant advantage of maintaining perfect financial scores is that the City is able to secure the lowest available interest rates, which will save taxpayer resources. 

A representative said that the City plans to issue debt in early December and early February.

Of the over $92 million value of the December issuance, over $77 million is anticipated to go toward public Parks and Recreation facilities. 

“These projects include recreation centers in John Hunt Park and on Martin Road west of Redstone Arsenal, the final phase of renovations at the Sandra Moon Complex, park space in the Hays Farm area, demolition of the former City Hall — making way for a future expansion of Big Spring Park, and construction of the laboratory and warehouse space supporting criminal investigations for Huntsville Police Department,” said a statement from the City.

The early February issuance will be larger, at $200 – $225 million, with the final offering statement available in January.  This money will be directed towards school renovations and construction, updates to the Von Braun Center, and the completion of the new City Hall.