The City of Kansas City is excited to announce that Fitch Ratings recently upgraded its Issuer Default Rating (IDR) and unlimited tax general obligation (ULTGO) bonds to 'AA,' reflecting its strong financial performance and economic indicators. The upgrade underscores Kansas City's demographic and economic strength, positioning it as a vital economic and employment center within the greater Kansas City metro.

“Kansas City receiving an AA credit rating and continuing to remain in our strongest fiscal position ever is a testament to the great strength and productiveness of our local government.  Not only does our rating indicate we have strong financial performance, but it sends a clear message to investors and businesses that our community is a stable place to grow and succeed,” said Mayor Quinton Lucas. “I applaud our Finance Department and dedicated workforce for working behind the scenes to maintain our fiscal strength. We will continue to work to build a brighter financial future for Kansas City.”

“Kansas City is at our strongest fiscal position ever with record high cash reserves, even after weathering the economic downturn related to the COVID-19 pandemic.  We are so thankful for our incredible finance and budget team for finding creative ways to improve service delivery, launch new programs, and maintain our solid foundation,” said City Manager Brian Platt.

“The rating upgrade by Fitch reflects a revision to their methodology for reviewing local governments and is a fair assessment of the City’s creditworthiness. The Finance Department appreciates the leadership of the Mayor, City Council, and City Manager in ensuring the City’s fiscal resiliency, and this rating change reflects that leadership,” said Tammy Queen, Director of Finance for the City of Kansas City.

Key Details from the Fitch Ratings Report:

• Population Trend: Kansas City's population trend is 'Midrange,' with a 0.8% median annual percentage change in population in 2022, exemplifying steady growth.
   
• Demographic and Economic Strength: In 2023, the city's indicators for the unemployment rate, educational attainment, and median household income were rated as 'Strong,' demonstrating robust economic performance relative to Fitch's local government rating portfolio.
   
• Economic Concentration and Population Size: With a population of 509,129 in 2022 and a diversified economy, Kansas City qualifies for Fitch's highest size/diversification category, showcasing economic strength and diversity.
   
• Financial Resilience: The city's financial resilience reflects a 'Midrange' revenue control assessment and a 'Limited' budgetary flexibility assessment, emphasizing sound financial management practices.

The city remains committed to maintaining its general fund reserves and addressing long-term liabilities to ensure a stable financial future for all Kansas City residents.