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2021

Bond rating evaluation by Standard & Poor's national bond rating agency: Revenue

Status Indicators:
Proceeding as Planned
 Monitoring Progress
Reviewing for Improvement
Information Unavailable

Status Indicators: Proceeding as Planned |  Monitoring Progress | Reviewing for Improvement | Information Unavailable

A revenue bond is a municipal bond supported by the revenue from specific projects, such as water and sewer or stormwater improvements. Revenue bonds are municipal bonds that finance income-producing projects and are secured by a specified revenue source. They differ from general obligation bonds (GO bonds) that can be repaid through a variety of tax sources. While a revenue bond is backed by a specific revenue stream, holders of GO bonds are relying on the full faith and credit of the issuing municipality.

The revenue bond rating is issued by a rating agency with the purpose to provide a credit risk evaluation about how safe the revenues are of the issuer of a revenue bond. The higher the credit rating, the better the credit quality, indicating a safer and more stable investment and lower interest rates for the issuer.  

The highest rating issued by Standard & Poor's is AAA. The grades AAA, AA, and A are considered investment grade, or of high quality.


The rating agency provides their assessment of the City's financial stability using ratings assigned to the following criteria: institutional framework, economy, management, budgetary flexibility, budgetary performance, liquidity and debt and contingent liabilities. The rating reported for this indicator is from Standard and Poor's evaluation.

The ratings have been converted to numerical values to allow for charting.

AAA=4

AA=3

In 2019 when the five-year target was established, it was the City’s preference to increase the target, but as there are many external contributing factors that affect the rating to confidently increase the 2024 target to AAA, the highest possible rating, it remained at AA.  

Standard & Poor's Global Rating has assigned 'AA+' rating to Fort Lauderdale's revenue bonds. 

The ratings reflect the following:

  •  A very strong enterprise risk profile assessment which includes a strong service area economy, low industry risk, a strong market position, and a "very strong" operational management assessment (OMA); and
  • Strong financial risk profile assessment which includes adequate all-in coverage of debt service, a very strong liquidity and reserve position, an adequate debt and liabilities position, and a "very strong" financial management assessment (FMA).

Standard & Poor's Global Rating. Standard & Poor is a leading index provider and a source of independent credit ratings.

City of Fort Lauderdale
100 North Andrews Avenue | Fort Lauderdale, FL 33301
www.fortlauderdale.gov

Office of Management and Budget
Division of Structural Innovation
Contact: [email protected]

City of Fort Lauderdale
100 North Andrews Avenue | Fort Lauderdale, FL 33301
www.fortlauderdale.gov

Office of Management and Budget
Division of Structural Innovation
Contact: [email protected]