Comptroller Darlene Green Statement Regarding the Fitch Rating

In recent months, credit rating agencies have revised their rating criteria and the City of St. Louis will be affected by the changes.

June 2, 2016 | 2 min reading time

This article is 9 years old. It was published on June 2, 2016.

In recent months, credit rating agencies have revised their rating criteria and the City of St. Louis will be affected by the changes. The city has been proactive and commissioned a 10 year financial strategic plan, approved in September, 2015 by the City's Board of Estimate and Apportionment.

The Fitch agency downgraded the city yesterday after applying its new rating criteria released in April, 2016. Under the new criteria, the earnings tax reauthorization is a negative factor for the first time. Fitch says it, along with the Hancock Amendment, reduces the city's legal ability to raise revenues. Another key rating factor is the city's low reserve levels. Fitch had more positive comments regarding city's ability to control costs and the city's favorable long-term liability burden.

Comptroller Green commented, "The city proved its financial resilience during the most recent economic downturn. But, the city would be smart to strengthen its financial resiliency for the future by increasing reserves and seeking legislation to remove the earnings tax reauthorization mandate."

The city remains in the "A" category for overall ratings with all three credit rating agencies Moody's, Standard & Poor's, and Fitch.

The Comptroller of the city of St. Louis is charged with protecting the credit of the city and with being a watchdog over taxpayer dollars

  • Department:
    Office of the Comptroller
  • Topic:

Most Read News

  1. CDA Expands Tornado Recovery Vacant Unit Turns Program to Include Private Landlords CDA Expands Tornado Recovery Vacant Unit Turns Program to Include Private Landlords Press Release
  2. City of St Louis’ Division of Corrections Set to Host First-Ever Job Fair Focused on the Recruitment of Correctional Officers The St. Louis City Justice Center will be hiring on-the-spot for Correctional Officers I and II.
  3. City of St. Louis Opens STLRecovers Outreach Center and Launches Private Property Assistance Application The STLRecovers Outreach Center will enhance the City’s ability to connect residents affected by the May 16 tornado directly to services offered by the City.

Help Us Improve This Page

Did you notice an error? Is there information that you expected to find on this page, but didn't? Let us know below, and we'll work on it.

Was this page helpful?



Comments are helpful!
500 character limit

Feedback is anonymous.