Fitch Ratings, a top credit rating agency, reaffirmed the Town of Normal’s AAA designation as part of a regular review of the Town’s credit.
“We are pleased Fitch Ratings expressed continued confidence in the Town’s financial position and fiscal management,” said Director of Finance Andrew Huhn. “This reaffirming of the Town’s AAA rating comes from an internal Fitch review, likely completed due to the economic challenges created by the pandemic.”
Fitch first assigned the Town’s AAA rating in April 2010. The AAA rating is given to organizations of exceptionally high quality, established with a consistent cash flow and a capacity for payment of financial commitments unlikely to be adversely affected by foreseeable events. The AAA rating applies to all the Town’s $81.4 million in General Obligation (GO) bond debt for fiscal year 2020-21.
Fitch Ratings reaffirmed the Town’s stable rating based on:
• ample reserves and superior budgetary flexibility;• existing financial flexibility resulting from conservative budgeting, strong reserves and policies, solid expenditure-cutting ability; and• the active role the Town takes in economic development.
“We are committed to protecting the Town’s present and financial future,” added Huhn. “The Council and leadership team budget conservatively. This has helped us address the negative effects of the COVID-19 pandemic and keep the Town’s financial outlook strong and healthy.”
Fitch Ratings Inc. is one of the "Big Three credit rating agencies", the other two being Moody's and Standard & Poor's. It is one of the three nationally recognized statistical rating organizations designated by the U.S. Securities and Exchange Commission in 1975.