Moody’s recently upgraded the City of Minneapolis credit rating to AAA in addition to the same high ratings given in September by S&P Global and Fitch Ratings. This means Minneapolis is one of only a handful of cities in the United States to have received the highest marks from all three major ratings agencies at one time.
“Our City’s award-winning finance team works tirelessly to make sure we’re getting the most out of every dollar, and our AAA credit rating is a testament to the incredible job they do,” said Mayor Jacob Frey. “This rating isn’t just a feather in our cap. It means we can invest more in the projects that make a real difference for everyone who lives, works and visits Minneapolis. A big thank you to Chief Financial Officer Dushani Dye and her team; this success is a direct result of their leadership, talent, and dedication.”
A report released by Moody’s says the upgraded rating reflects the “continued strength in the city’s economic and demographic trends, a consistently strong financial profile and declining long-term liabilities.” It also notes the City’s strong fund balance that typically sits at 45 to 50 percent, as well as the solid position to absorb any increased costs related to employee compensation and public safety staffing.
“The Minneapolis City Council, the City’s Board of Estimate and Taxation, and Mayor, in partnership with our finance and budget team, work year-round to ensure the City’s financial stability,” said City Council Vice President Aisha Chughtai, who also chairs the Council’s budget committee. “This AAA rating from yet another institution is a reflection of that work. This excellent rating shows that our City is in a strong financial position, and we are prepared to invest in our residents and infrastructure into the future.”
In 2024, S&P Global and Fitch Ratings assigned the City high marks for the same stable outlook, as well as the City’s amenities and cultural attractions. They called Minneapolis the “second-largest economic center in the Midwest next to Chicago.” This month Moody’s praised the City’s “strong” financial management practices that include multi-year budgeting and long-term capital planning. It also considered the City’s strong labor force and low unemployment.
“This achievement solidifies what we’ve always known – that Minneapolis is an epicenter for financial strength and stability,” said City CFO Dushani Dye. “I’m proud of the finance team for its work in managing our City’s financial resources.”