BRUNSWICK, Ohio --- In a testament to the city’s fiscal security, Brunswick was recently upgraded to Aa1 by Moody’s Ratings.
The Moody’s Ratings system assigns securities a rating from Aaa to C, with Aaa being the highest quality and C the lowest quality. Brunswick’s new rating, up from Aa2, puts the city in Moody’s second highest category with “the best ability to repay short-term debt.”
Brunswick City Manager Carl DeForest said he and Finance Director Todd Fischer requested an upgrade to the city’s credit rating from Moody’s in February.
“Based on the exceptional improvement we have made in the last decade in fund balance reserves and overall financial management, we have been notified that Moody’s Investors Service has upgraded our issuer rating from Aa2 to Aa1,” DeForest said. “A great deal of credit goes to everyone involved who followed a reasonable plan to improve the financial wellbeing of the city.”
DeForest added “a special thank you to Todd, who has helped us navigate some choppy waters since he became the Finance Director.” DeForest said Fischer was “integral in developing the financial plan and the associated processes to put us in the position we are today.”
In its Feb. 28 report, Moody’s stated “the ratings were upgraded because the city’s fund balance ratio has grown and will remain exceptionally strong. The strong financial position and the city’s prudent financial management will limit the need for additional borrowing.”
The report went on to state that the “upgrade of the issuer rating to Aa1 reflects the city’s exceptionally strong fund balance ratio. Available fund balance was strong at 72% of revenue in 2022, and an even stronger 188% when including funds restricted for certain operating purposes. Unaudited figures reflect additional growth in 2023 and prudent budgeting will result in at least balanced operations for 2024.”
The report added that while “the city has high reliance on income tax revenue” it also “benefits from an above-average resident income ratio and job growth across the Cleveland metro area.”
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