Moody’s ratings highlight strong financial outlook for City of PSL

Published on April 07, 2025

Moody’s Investor Services, one of the world’s primary credit rating agencies, recently upgraded two important ratings that are indicators of the City of Port St. Lucie’s strong financial management, policies and strategies.

Moody’s upgraded the City’s issuer and general obligation ratings, as well as its water and sewer revenue bonds. Moody’s also affirmed the City’s stormwater revenue bonds.

The issuer and general obligation ratings were upgraded from Aa3 to Aa2, based on the City’s “improved financial position.” The ratings agency cited strong revenue growth, conservative management of American Rescue Plan Act funds and manageable long-term liabilities and fixed costs as reasons for the upgrade.

“These ratings reflect Moody’s confidence in Port St. Lucie’s financial management, sound fiscal policies and long-term stability,” said Stephen Okiye, Port St. Lucie’s Finance Director/Treasurer. “Their ratings also highlighted favorable economic trends in the community, which demonstrates how the strategic vision of our City Council and the efforts of our staff to uphold sustainable financial policies is paying dividends that will help us continue to provide high-quality services to our residents.”

Moody’s upgraded the City’s water and sewer bonds from A1 to Aa3, highlighting manageable debt levels and ample cash reserves, as well as proactive infrastructure planning to support the improved rating.

Port St. Lucie’s stormwater revenue bonds were affirmed at Aa3.

Moody’s ratings for long-term bonds range from a high of Aaa to the lowest rating of C. Additionally, they are segmented from 1-3, with 1 being the highest and 3 being the lowest. A rating of Aa is considered high quality and subject to very low credit risk.