City of Tuscaloosa’s Top-Tier Credit Ratings Reaffirmed by National Rating Agencies

The City of Tuscaloosa has once again received a reaffirmation of its AAA credit rating from Fitch Ratings, as well as its Aa1 rating from Moody's Investors Service after review by the nationally renowned credit agencies in March 2026.

The AAA is the highest possible credit rating for municipalities nationwide. Only two other cities in Alabama - Hoover and Huntsville - have received this distinction from a national rating agency.

Fitch Ratings noted several factors within its report contributing to the City's strong standing, including ample budgetary flexibility and a high revenue control assessment. The report praised the city's implementation of a more conservative undesignated reserve fund balance policy, which increased from 10% to 20% of General Fund budgeted expenditures.

The Moody's report praised Tuscaloosa's strong financial position as well, noting Tuscaloosa's "conservative budgeting and prudent fiscal management." The report also commended the City's expanding local economy and continued growth in operations and reserves.

"I am proud that the City of Tuscaloosa has once again earned these exceptional ratings from Fitch and Moody's. This reflects our continued commitment to responsible financial stewardship and the tireless work of our Accounting & Finance team and City Council," said Mayor Walt Maddox. "These ratings underscore our momentum and our readiness to continue building a strong, resilient future for everyone who calls Tuscaloosa home."

Fitch and Moody's ratings designations are based on key rating drivers including revenue framework, expenditure framework, long-term liability burden and operating performance. The credit opinions can be viewed in their entirety on FitchRatings.com and Moodys.com.