Cincinnati officials announced Thursday the city has received an upgrade on its bond rating.
Standard and Poor's has improved the city's rating on its unlimited-tax general obligation debt to AA. Previously it was AA-. The rating firm listed the city's outlook as stable.
"When we took office we faced $800 million in pension liability and had been downgraded by the rating agencies for the first time in a generation," said Mayor John Cranley in a written press release. "Within 3 years we have shored up the pension, balanced the budget and have now earned an upgrade. We are getting the City's financial house in order."
The ratings make it easier for the city to borrow money for major projects and initiatives with a lower interest rate. If the ratings can be sustained, the city says it could result in debt service savings of between $4 and $12 million over the next 20 to 25 years.
"Bond ratings like these allow us to improve assets and ultimately lead to a better Cincinnati," said City Manager Harry Black in the press release. "The City stands on solid financial ground and these ratings will provide more opportunities to build on this strong foundation."
Last week, Moody's Investors Services reaffirmed the city's general obligation bond rating on Aa2. It also left the city in the stable outlook category.