Fitch Upgrades Macon-Bibb County’s Credit Rating to ‘AA’ with Stable Outlook
On September 3, 2024, Fitch Ratings announced it had upgraded several ratings for Macon-Bibb County to ‘AA’ from ‘AA-’, assigning a Stable Rating Outlook and removing the ratings from under criteria observation.
The ratings upgraded include:
- Issuer Default Rating (IDR)
- GO sales tax bonds
- Macon-Bibb County Urban Development Authority (UDA) revenue bonds
- Macon-Bibb Industrial Authority (Bass Pro and Sofkee Park Projects) revenue bonds
“This is just another example of how we and our partners are ensuring we are good stewards of the taxpayers’ money and being fiscally stable now and in the future,” said Mayor Lester Miller. “Thanks to the support of our community, we’ve been able to make big strides in our projects, which have allowed us to reduce the millage rate, increase our budgets for things like public safety and recreation, and improve the quality of life for everyone.”
Fitch Ratings noted that the upgrade reflects the county’s financial resilience assessment of ‘aaa’, citing its ‘ample’ level of budgetary flexibility due to high revenue and expenditure controls. Fitch expects the county to maintain unrestricted general fund reserves equal to at least 7.5% of spending.
The rating agency also highlighted Macon-Bibb’s financial resilience, which is supported by a combination of its ‘High’ revenue control and ‘High’ expenditure control assessments, resulting in an ‘Ample’ budgetary flexibility evaluation.
“I want to commend our Commissioners for working so diligently on oversight of our budget and reducing our millage rate, and our Finance and Budget teams for the hundreds of hours they put in every year to keep us in a stable and growing position,” added Mayor Miller.
Fitch Ratings emphasized the importance of government credit ratings, which are independent assessments of a government’s ability and willingness to meet its financial obligations. The ratings directly affect the cost of government borrowing, influencing decisions on bond issuances and other financial obligations. Lower credit ratings could lead to higher payments, leaving fewer funds for daily operations or requiring additional revenue sources.
Additionally, these ratings are considered by employers and industries when determining whether to invest in or expand in an area. Fitch’s report also examines environmental, social, and governance (ESG) factors that may impact a government’s credit standing.
