City of Utica credit rating upgraded by Moody’s

UTICA, N.Y. — Moody’s Investors Service Inc. has upgraded the City of Utica’s credit rating to its highest level in more than 5 years, Mayor Robert Palmieri and Comptroller William Morehouse announced Monday.

Moody’s upgraded the credit rating from Baa2 to Baa1.

The Moody’s announcement follows S&P Global upgrading Utica to an “A” rating, which the city announced in early February. It represented Utica’s highest rating grade in 30 years, the release stated.

The City of Utica said it also earned a “rare,” three-notch rating upgrade from Fitch Ratings in early January.

The Moody’s report indicates that its upgrade reflects the city’s “improved” financial position and cites a “trend of structurally balanced operations leading to growth in reserves and improvements in the tax base.”

The report also indicated “evidence of strong management” as the “multiple” operating surpluses that the city’s secured have “steadily grown” its fund balance.

In addition to the improvements in credit ratings, Utica’s fiscal-stress score “was cut in half” last month, marking the “second straight year the city’s score showed significant improvement.”

New York State Comptroller Thomas DiNapoli’s local government-monitoring system measures fiscal-stress scores for communities across the state.

Reaction

The City of Utica faced “tough” fiscal challenges and made “difficult” budget decisions over the past five years but “we stuck to our financial-recovery plan,” Palmieri contended in the news release.

“The fact all three of the leading financial institutions have upgraded our credit rating and acknowledged our improvements is great news, but we still have more work to do to continue this positive trajectory,” he added.

“By every measure, whether it be reports from the financial institutions or New York State Comptroller Tom DiNapoli’s fiscal-stress monitoring system, Utica’s financial position has greatly improved in recent years and it’s a testament to strong partnerships and everyone working together,” Morehouse said in the release.

Contact Reinhardt at ereinhardt@cnybj.com