08/20/2026
Absolutely great news for our island. We are so blessed to have such positive policies and strong leadership. Let us continue making sound, forward thinking policies.
Two credit agencies evaluated the City of Galveston’s financial standing and assigned high ratings, signifying confidence in the city’s stability and opening the door to better interest rates.
The City is preparing to issue approximately $9.44 million in public improvement bonds for the construction of Fire Station 2, a bond voters approved in November 2025. As part of that process, the city sought ratings from credit agencies. After reviewing the city’s finances, Fitch Ratings assigned Galveston a ‘AA+’ score and Moody’s Ratings assigned a ‘Aa3’, both among the highest ratings the agencies assign.
Financial rating agencies assess the city’s ability to repay debt, the current debt levels and pension obligations, the budgetary performance and stability, governance practices and management, and the city’s economic conditions. The resulting credit rating helps determine the interest rate for a city to borrow money by issuing bonds. By receiving one of the highest credit rating scores, the City of Galveston will benefit from favorable interest rates when it needs to seek bonds to pay for widescale infrastructure projects.
“One of my main priorities as city manager has been strengthening the city’s budget and financial policies, as well as building a reserve that can help the city in times of natural disasters,” City Manager Brian Maxwell said. “The scores from the ratings agencies validate those efforts and put us in a good position as we prepare to seek bonds for the construction of Fire Station 2.”
In the announcements, the agencies noted the strengths of Galveston’s economy, anchored by tourism, health care, maritime industries, and the Port of Galveston, which ranks as the nation’s fourth-busiest cruise port. Ongoing investments in these sectors, along with strong financial oversight, provide the foundation for the City’s long-term stability. Another reason cited was the city’s tenured management team and strong financial policies leading to reserves of around 30 percent of revenue in recent years.
The agencies considered the island’s outsized environmental risks for storms and a lower median household income relative to other cities as potential liabilities and weaknesses. For more information, please see the Fitch Ratings announcement here and the Moody’s Rating announcement here.