The City of Reading has announced that Moody’s Ratings has revised the City’s financial outlook from stable to positive while affirming its Baa2 issuer rating and Baa2 ratings on the City’s general obligation bonds.
The positive outlook reflects Moody’s recognition of the City’s strong financial reserves, healthy liquidity, and progress in managing long-term financial obligations while continuing to invest in critical infrastructure.
“Having an independent agency like Moody’s recognize the progress we’re making is encouraging news for the City of Reading,” said Mayor Eddie Morán. “Responsible leadership has been one of the pillars of my administration from day one, and that includes making sound financial decisions while continuing to invest in our neighborhoods, infrastructure, and residents. We know there is still work ahead of us, but this positive outlook is a reflection of the progress we’ve made and our commitment to building a stronger financial future for Reading.”
In its October 27 announcement, Moody’s highlighted the City’s strong financial reserves and liquidity, both of which exceeded 100% of annual revenue in fiscal year 2024. The agency also recognized Reading’s ability to manage significant sewer infrastructure investments without substantially increasing its debt burden.
Moody’s noted that the City’s long-term financial obligations have moderated in recent years and that the remaining sewer infrastructure projects associated with the consent decree are expected to be substantially completed in 2027.
The agency identified several factors that could contribute to a future credit rating upgrade, including continued management of infrastructure costs, stabilization of operating budgets, and maintenance of strong financial reserves.
While Reading’s Baa2 credit rating remains unchanged, the revised outlook signals a more favorable assessment of the City’s financial direction and its ability to maintain financial stability while addressing ongoing infrastructure needs.
The full rating announcement from Moody’s Ratings is available HERE.
