Santa Fe keeps AA+ bond rating
Oct. 28—The city of Santa Fe's bonds received an AA+ rating this week from an independent agency despite recent late audits.
The AA+ by Fitch Ratings, headquartered in New York City, means the outlook for Santa Fe's bonds is stable and the city is on solid financial footing.
The AA+ rating — on a scale of worst-case D to best-case AAA — applies to $16.6 million in general obligation bonds, $38.8 million in senior lien gross receipts tax revenue bonds and $55.1 million in subordinate lien gross receipts tax bonds.
"The city's 'AA+' IDR and GO bond ratings reflect ample revenue flexibility, demonstrated spending control, a moderate long-term liability burden and the maintenance of superior financial resilience," Fitch Ratings' analysis states.
The rating follows identical ratings for the city affirmed by the agency going back to at least 2016. Driving the overall current rating are scores of "AA" on the city's revenue framework, expenditure framework and long-term liability burden, and "AAA" on operating performance.
In a news release, City Manager John Blair called the news "a meaningful indication that the City's finances are stable, secure, and that City financial leadership has taken appropriate measures to ensure financial resilience."
City Finance Director Emily K. Oster, who started in the position in September, called the ratings "a testament to our city's strong financial health" in the news release.
The Fitch Ratings analysis states the city's financial performance "remains sound through the current recovery from the pandemic" and that tax revenue in 2021 remained stable due to construction activity offsetting declines in the local tourism industry.
Earlier this month, city officials announced the financial audits for fiscal years 2021 and 2022 would likely be available by the end of June 2023 — making the audits 18 months late and six months late, respectively.
City officials have announced that finance staff is now current on closing the books for each month, and department leaders are now presenting financial reports to City Council monthly.
