JACKSONVILLE, Fla. – Fitch Ratings’ AA+ with a stable outlook means Jacksonville is viewed as financially strong and likely to borrow more cheaply, though its high long‑term pension and debt obligations remain a risk.
Fitch assigned the AA+ rating to Jacksonville’s $400 million Series 2026A special revenue and refunding bonds and $53 million Series 2026B special revenue refunding bonds, and affirmed the city’s issuer default rating and outstanding special revenue obligation bonds at AA+. The outlook is stable.
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Fitch said the rating reflects Jacksonville’s very strong financial resilience, including an expectation that available reserves will remain above 10% of spending and a 2025 fund‑balance‑to‑expenditure ratio of about 41%.
The agency cited the city’s solid operating record and its role as an economic anchor for northeast Florida, and applied a one‑notch positive adjustment for that regional significance.
The special revenue bonds are secured by a covenant requiring the city to budget and appropriate sufficient non‑ad valorem revenue to cover debt service; those revenues are rated on par with the issuer default rating. Fitch adjusted the city’s debt metrics to reflect principal amortization through Dec. 31, 2026, and the pro forma effect of the new Series 2026 issuance.
Fitch flagged weaknesses in Jacksonville’s long‑term liability profile, calling it “weak” relative to peers. Key metrics cited include liabilities to personal income near 11.1%, liabilities to governmental revenue around 256.7% and carrying costs of roughly 17.0%, reflecting elevated pension liabilities and moderately rising direct debt. Revenue volatility was described as “midrange.”
The agency said the rating could be lowered if reserves fall below 10% of general fund spending, if economic and demographic performance weakens materially, or if long‑term liabilities increase substantially relative to resources. A positive rating action would likely require a sustained reduction of about 15% in long‑term liabilities or improved economic and demographic metrics.
Fitch noted its Climate.VS screener did not indicate elevated climate risk for Jacksonville and assigned an ESG relevance score of 3, meaning ESG factors are credit‑neutral or have only minimal credit impact. The rating action and analysis were published by Fitch Ratings.
Click here to see more information on the Fitch Ratings website.