Fitch Upgrades Erie County to ‘AA’, Upgrades outlook to “Positive” from “Stable”
Independent Analysis Affirms Erie County’s Stable Fiscal Path
ERIE COUNTY, NY— Wall Street rating agency Fitch Ratings (“Fitch”) has upgraded Erie County’s credit rating to “AA” and pronounced the county’s rating outlook as “positive” in the county’s most recent ratings assessment, announced by Fitch on Monday September 16. The AA rating and positive outlook, upgraded from “AA-“and “stable,” respectively, reflect the budgetary discipline and vision of the Poloncarz administration, and allow the county to borrow funds for critical infrastructure projects at more favorable rates.
“This upgrade from Fitch, an independent Wall Street entity, is great news for Erie County. An upgrade in our credit rating increases our ability to borrow at a lower interest rate, saving county residents millions of dollars in interest on infrastructure projects and other necessary county investments,” said Erie County Executive Mark C. Poloncarz. “In addition, this upgrade by an independent ratings firm confirms what we know locally, Erie County is fiscally strong and headed in the right direction. I thank Comptroller Kevin Hardwick and his team, as well as Budget Director Mark Cornell and his team, for their great work in ensuring the fiscal stability of our county government at a time other governments are in distress
Erie County Comptroller Kevin Hardwick added, “Through diligent collaboration, this credit rating upgrade is a testament to the hard work of my staff, the County Executive’s administration, and the Legislature.”
Fitch noted the County’s fund balance reserves and low debt ratio as significant factors in the announced rating upgrade. The County’s 2023 Audited financials reflected a $4.6 million increase in unassigned fund balance to $141.1 million, which is equivalent to 10.3% of annual operating expenses (more than double the County Charter mandated 5% level). Additionally, the Poloncarz Administration has worked as aggressively to reduce outstanding debt as to invest in infrastructure. Since 2012, more than $153.6 million in Outstanding General Debt has been retired.
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