City of Toledo Receives Highest Bond Rating in 4 Decades

The City of Toledo has achieved another significant financial milestone, as Moody’s Investors Service has upgraded the City’s bond rating from A2 (positive) to A1 (stable)—its highest rating in more than four decades. Additionally, Standard & Poor’s (S&P) has affirmed Toledo’s A (stable) rating, recognizing the City's continued financial progress over the past few years.

“We have worked tirelessly to strengthen our city’s financial position, and this rating from Moody’s is a clear signal that Toledo’s fiscal future is strong,” said Mayor Wade Kapszukiewicz. “A stronger bond rating means lower borrowing costs, which saves taxpayer dollars and allows us to invest more in the neighborhoods, infrastructure, and services that make Toledo a great place to live. Every Toledoan should take pride in this achievement.”

Moody’s cited Toledo’s improved financial management, growing reserve levels, and commitment to long-term fiscal planning as key drivers of the rating increase. The A1 rating follows years of deliberate, disciplined budgeting and is the highest rating from Moody’s for the City’s General Obligation bonds since May 1980. Toledo’s bonds have only been rated higher twice: Aa in August 1953 and again in May 1967.

“On behalf of City Council, I’m very pleased with Moody’s decision to upgrade Toledo’s rating and with S&P’s continued confidence in our financial position,” said City Council Finance Chair George Sarantou. “These ratings reflect years of disciplined financial management and responsible budgeting. Council looks forward to continuing this strong partnership with the administration to ensure the City remains on solid financial footing.”

As noted by both Moody’s and S&P, the City’s financial outlook remains stable, reflecting consistent operating performance, a diversified tax base, and prudent management of debt and capital projects.

Last year, S&P upgraded Toledo’s rating from A- to A, and Moody’s improved its outlook from stable to positive. Today’s announcement represents another significant step forward in the City’s fiscal momentum.