City maintains top credit rating
The City of Wilmington got high marks for its financial strength following a recent review by the three major credit rating agencies. All three agencies – Fitch, Moody’s and Standard & Poor’s – once again gave the city a triple A rating.
Like most city governments, Wilmington issues bonds to pay for large projects, such as the $44 million, 2014 Transportation Bond and the $38 million, 2016 Parks Bond. The projects are paid back over time, like a homeowner pays a monthly mortgage. The better bond ratings result in lower interest rates and, in turn, lower borrowing costs.
The credit rating agencies determine their ratings based on several factors, including their view of the city’s management of public dollars, the city’s overall financial health and stability, and the city’s amount of savings.