Youngstown receives credit rating increase from Moody's

The City of Youngstown received a low credit risk rating from Moody's Ratings.

The "A2" Low Credit Risk rating means the city is in a solid financial position.

According to the Moody's Ratings report, the A2 rating "reflects the city's solid financial position, despite its challenged economic base and reliance on economically sensitive income taxes for operations."

The report said the available fund balance ratio has stayed around 40% for the past few years and will likely remain that way.

Moody's found that the resident income ratio and full value per capita are vary low, about 51% and $34,000, but it's offset by Youngstown State University. The report said that even though there is ongoing development, the region's economic growth is lagging behind and the population is declining.

Even with those factors, Moody's believes Youngstown will keep solid financial reserves in the 2025 Fiscal Year even with a decline of around $10 million for one-time capital spending.

Youngstown could raise its rating by keeping its fund balance ratio well above 50%, expansion and diversification of the economy and keeping its long-term liabilities ratio below 200% consistently.

The credit rating could drop if resident incomes or economic growth slows and the sustained increase in long-term liabilities ratio is above 350%.