From the City of Aberdeen:
On 21 February, Fitch Ratings, one of America’s premiere credit rating agencies, announced it was upgrading the City of Aberdeen from AA to AA+ bond rating. Fitch, the oldest of America’s “Big 3” credit rating agencies and creator of today’s AAA to D credit rating system, indicated the change to Aberdeen’s rating status was based on several positive factors including the City’s stable economic base, superior revenue framework and strong financial resiliency. Along with the city’s conservative liability management posture and solid expenditure framework, Fitch also reflects the significance of the Aberdeen Proving Grounds to the local economy.
Fitch Ratings credit ratings provide the City of Aberdeen with its professional opinion on the relative ability to meet financial commitments such as interest, preferred dividends, repayment of principal and insurance claims or counterparty obligations. Fitch’s announcement of the upgrade reflected:
• Aberdeen’s stable population coupled with rapid revenue growth. The city has exerted notable control over labor wages and benefits underlying its solid expenditure flexibility.
• The city utilizes a limited net pension liability supporting a rating upgrade assessment reflecting its long-term liability burden.
• Aberdeen retains an “exceptional capacity to manage risks associated with a normal economic cycle.” The city’s combination of strong revenue which raises capacity, expenditure flexibility, substantial reserves and prudent budgetary management reflect Fitch’s change.
• APG’s military importance and transition towards higher-tech military research and development will continue to support economic growth that easily outpaces that of the nation.