The City of Asheville receives positive news from Standard & Poor’s (S&P)Global Ratings, which revised the City’s debt outlook to stable and affirmed its top-tier ‘AAA’ long-term rating on general obligation (GO) debt. The agency also affirmed the City’s ‘AA+’ long-term rating on its lease obligation bonds (LOBs) and upgraded its special obligation bonds (SOBs) to ‘AAA’. The Triple A rating is the highest possible S&P Global rating and signifies an extremely strong capacity to meet financial commitments.
The outlook revision reflects Asheville’s continued financial strength and resilience, particularly in the aftermath of Hurricane Helene. According to S&P, the City has maintained healthy financial reserves while experiencing steady recovery in economically sensitive revenues, including occupancy and sales taxes.
S&P Global Ratings also noted the City has identified credible and targeted strategies to address a projected budget gap for fiscal year 2027. These include a combination of strategic expense reductions and potential revenue adjustments, which are expected to support stable financial operations moving forward.
“I want to express gratitude to the Finance Team and staff throughout the organization for continuing to navigate uncertainties and make thoughtful decisions to keep our organization financially strong,” said City Manager DK Wesley. “This moment belongs to our community. It reflects the discipline, partnership, and shared commitment necessary to build not just for today, but for generations to come.”
The upgrade of Asheville’s special obligation bonds to Triple A further underscores the City’s strong credit profile. S&P cited the reliability and strength of the pledged revenue stream, noting it is effectively aligned with the City’s overall creditworthiness under its established criteria.
“This recognition reflects the City’s disciplined financial management and the steady progress we’ve made in recovery and stabilization since Helene,” said Tony McDowell, Finance and Management Services Director. “Maintaining strong reserves while navigating economic challenges positions Asheville well to continue delivering essential services and investing in our community’s future, and we welcome this positive review by a trusted independent third party such as S&P.”