City of Tuscaloosa’s Top-Tier Credit Ratings Reaffirmed by National Rating Agencies
July 11, 2025
The City of Tuscaloosa has received a reaffirmation of its AAA credit rating from Fitch Ratings, as well as its Aa1 rating from Moody’s Investor Service after review by the nationally renowned credit agencies in June 2025.
The AAA is the highest possible credit rating for municipalities nationwide. Only two other cities in Alabama – Hoover and Huntsville – have received this distinction from a national rating agency.
In its report, Fitch Ratings noted several factors contributing to the City’s strong standing, including ample budgetary flexibility and a high revenue control assessment. The review also noted various upcoming projects including Elevate Tuscaloosa’s Saban Center and the 10-Year-Plan for the Water and Sewer utility.
Similarly, the Moody’s report praised Tuscaloosa’s strong reserves and liquidity, noting “Tuscaloosa maintains a strong financial position, underpinned by prudent fiscal management and conservative budgeting.” The report also noted that Tuscaloosa’s economy is poised for growth, “…fueled by substantial ongoing and planned residential projects, as well as steady commercial and industrial developments.”
“This achievement is the result of years of diligent financial management and strategic planning by our City Council and team members,” Mayor Walt Maddox said. “These top-tier credit ratings are a powerful affirmation of the hard work and responsible stewardship of our taxpayer dollars. They signal to investors that our City is a sound and stable investment, enabling us to secure the most favorable borrowing rates available. That translates to real savings for our residents—and positions us to build a City ready to meet the future with strength and confidence”.
Fitch and Moody’s Rating’s designations are based on key rating drivers including revenue framework, expenditure framework, long-term liability burden, and operating performance. The credit opinions can be viewed in their entirety on FitchRatings.com and Moodys.com.
Fitch and Moody’s Rating’s designations are based on key rating drivers including revenue framework, expenditure framework, long-term liability burden, and operating performance. The credit opinions can be viewed in their entirety on FitchRatings.com and Moodys.com.