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Fitch Upgrades Boise Revenue Refunding Bonds to AAA


  • Kelsey Hawes

The city of Boise got high marks from the Fitch Group July 25, boosting both the city's revenue-refunding bonds and issuer default rating from AA+ to AAA. According to Fitch, the upgrade is due to "stability of the city's revenues despite economic volatility."

In particular, Fitch pointed to Boise's "knowledge-based businesses that are especially prominent among the city's major employers and have helped attract a highly educated workforce." Fitch analysts considered unemployment rates that "are notably low" and high construction activity, with both contributing gains to Boise's general fund.

Property taxes generate nearly two-thirds of Boise's general fund support and taxes on existing properties may be increased annually by no more than 3 percent. Fitch stated Boise's overall revenue growth had "outpaced inflation and U.S. economic performance over the past 10 years," primarily due to the city's steady increases in property tax revenues.

What's more, Fitch analysts wrote the city of Boise is "well positioned to withstand a moderate economic recession," with reserve levels remaining high while retaining "substantial flexibility" to reduce expenditures.