News Flash

Three respected credit rating services have given Hampton their seal of approval based on the city's recent financial record. 

Fitch Ratings and S&P Global Ratings each gave Hampton a rating of "AA+," and Moody's Investors Services applied a rating of "Aa1." In each instance, the ratings are the second-highest offered by the services. These rankings will allow the city to receive favorable interest rates when borrowing bonds.

Here is a look at what some of the services had to say about Hampton:

Fitch Ratings

On the rating: It reflects “the city's demonstrated ability to maintain healthy financial flexibility. Along with sizable reserves, the city's broad revenue-raising authority and spending flexibility support its superior level of inherent budget flexibility to address periods of economic distress. Long-term liabilities are expected to remain within the moderate range, reflecting manageable future capital and issuance demands. Revenue growth prospects are stagnant.”

On the city’s operating performance: “The combination of revenue and expenditure flexibility, supplemented by very healthy reserves, should enable the maintenance of a high level of financial flexibility during cyclical economic downturns. The city's budget management is conservative and historical financial performance has been positive. Fitch expects these trends to continue.”

S&P Global Ratings

On the city’s credit overview: “The city has navigated the pandemic years with financially conservative assumptions that have contributed to budget flexibility and available resource growth. We anticipate the city will maintain its very strong reserve position in the near term. The debt profile has increased materially in part due to advance-funded projects scheduled for 2023 given the low interest rate environment. While moving up the scheduled debt issuance lowers the amortization rate below 65% and the total debt burden has increased, we anticipate that fixed costs will remain manageable.”

On the city’s reserves: “The city of Hampton has generated positive net operating results despite the pandemic during the two most recent fiscal years. The city has historically outperformed budget assumptions and maintains some flexibility to shore up potential budgetary pressures in the upcoming year.”