The City of Fort Worth received favorable credit actions from two major rating agencies this month, reflecting continued confidence in the City’s economic strength, financial management and improving pension position.
Fitch Ratings
Fitch upgraded the City’s Issuer Default Rating and limited tax bond rating to AA+ from AA and upgraded the Multipurpose Arena Venue Project (MAVP) bonds to AA+ from AA. Fitch maintained a Stable Outlook on the City.
The upgrades recognize legislative reforms to the City’s retirement fund that have improved Fitch’s assessment of the City’s long-term liability burden and eliminated a prior negative adjustment related to pension funding assumptions.
Moody’s Ratings
Moody’s revised the outlook on the City’s Aa3 issuer rating and related ratings to Positive from Stable. Moody’s cited the City’s continued economic expansion, strong revenue growth, prudent budgeting and capital planning, and ongoing improvement in pension funding. Moody’s noted that these factors, if sustained, could support an upgrade in the future.
Ratings affirm City’s strengths
“These rating actions affirm the strength of Fort Worth’s credit profile while recognizing the City’s continued investment in infrastructure and long-term financial sustainability,” said Fort Worth Chief Financial Officer Reginald Zeno. “The Fitch upgrade and Moody’s Positive Outlook are meaningful recognition of the City’s economic growth, financial discipline and progress addressing long-term pension obligations. At the same time, both agencies emphasize the importance of maintaining strong reserves, continued revenue growth and disciplined management of debt and pension liabilities as the City advances its capital program.”
Strong rating attributes
Both agencies highlighted Fort Worth’s population growth, economic diversification and continued investment. Moody’s noted that operating revenue has grown approximately 7.5% annually on average since 2019, while Fitch characterized the City’s population trend and economic diversification as among its strongest rating attributes.
Improvements to the City’s pension fund were a significant positive factor in both reviews. Moody’s reported that the City’s adjusted net pension liability has declined approximately 40% from its 2021 peak and recognized the City’s increased contributions. Moody’s also noted that the City’s pension amortization period declined by five years as reflected in the Dec. 31, 2025, actuarial valuation. Fitch recognized this progress as a key factor in its upgrade, concluding recent pension reforms have improved the City’s long-term liability profile and eliminated a prior negative adjustment for weak pension funding assumptions.
The agencies continue to recognize the City’s strong financial position and history of prudent budgeting. Fitch’s analysis assigns the City an “aaa” Financial Resilience assessment and notes that available general fund reserves remain well above its minimum threshold. Moody’s likewise cited strong fiscal management and a history of actual results outperforming budget expectations.
Both agencies recognize that Fort Worth faces elevated long-term liabilities as the City undertakes a substantial capital improvement program. However, they expect continued revenue growth and improved pension funding to help manage these obligations. Moody’s projects the City’s long-term liabilities ratio to remain below 350% through 2030.
