Roanoke Credit Rating Remains High

All but one of the ratings services that provide Roanoke’s credit rating have kept it at an AA level, according to the city's financial advisor, Public Financial Management Inc.

Of the three nationally recognized municipal rating agencies, Standard & Poor's and Fitch have affirmed the city's AA credit rating, while Moody’s has downgraded it to A1. This comes despite a difficult economy.

Ongoing successful redevelopment of downtown;

Growth potential related to the Virginia Tech Carilion School of Medicine and Research Institute and Carilion Clinic;

Financial management characterized as "strong" by Standard & Poor's under their Financial Management Assessment process.

In downgrading Roanoke one level, Moody’s cited income levels and city fund reserve levels below national averages. All three ratings are viewed collectively by the market, which suggests that investor interest in future bond issuance will remain strong.

These ratings are important because they affect the rates at which the city borrows money and a lower rating could act, in effect, as a tax increase.