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The original item was published from 12/8/2020 3:15:23 PM to 12/25/2020 1:05:04 AM.

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Royal Oak | City Spotlights

Posted on: December 8, 2020

[ARCHIVED] Fitch Affirms AA Credit Rating

City Hall at Dusk

The City of Royal Oak’s strong reserve levels and low long-term liabilities contributed to an AA long-term credit rating – one of the best ratings a municipality can receive. 

The rating reflects the opinion of Finch Ratings, one of the big three credit agencies. Finch uses an independent methodology to evaluate a municipality’s credit worthiness.  

The city maintained its bond rating and stable outlook with Finch citing it expects the city will “maintain a high level of financial flexibility throughout the present and future economic cycles.” 

The positive report also includes high praise for Royal Oak’s track record of maintaining high reserves, controlling its workforce size, and having moderate costs for servicing debt and other long-term liabilities. The rating indicates the city has a very strong capacity to meet its financial commitment.

“The city’s rating is telling of stable and sound management practices and careful long-term planning that involves commitment from our management staff,” said City Manager Paul J. Brake.  “We continue to strive for the best possible rating. In doing so, we help the city secure low interest rates for large capital projects needed to meet the infrastructure and growth needs of Royal Oak.”

Finch’s rating action commentary can be found in its entirety here.

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