Fitch Group upgraded its credit rating of Jefferson County’s sewer bonds, bringing it in line with the other two major credit rating agencies.

“We do surveillance every year, most of the time with all the rating agencies,” said Angela Dixon, the county’s chief financial officer. “This just makes it more consistent with the other rating agencies, S&P and Moody’s. Basically, Fitch is now in line with all of those other rating agencies.”

Fitch took its rating of Jefferson County sewer warrants from BBB to BBB+. According to Fitch’s Rating Commentary, the increase to the BBB+ rating reflects the sewer system’s low operating cost burden, offset by weak but improving capital investment.

“It’s just a consistent review of the county’s warrants,” Dixon said. “I think this is just an indication that they see the progress that we’ve made here at the county and everybody’s on the same page about what that rating needs to be.”

Fitch’s lower rating did not affect the county when it went to market to refinance its sewer debt.

Dixon said investors were able to look at the credit profile of the county and the strides it has made in following its bankruptcy plan, building reserves and budgeting conservatively. “I think they looked at the entire picture, at the investors. Of course, you can see the results that we had when we went to market.”

In early 2024, Jefferson County got positive reviews from investors and financial publications that would have been unimaginable more than 10 years ago. The county completed refinancing $2.24 billion in sewer debt that had been in place since its exit from bankruptcy in 2013.

That refinancing saved $1.17 billion throughout the life of the debt, reducing debt service payments, creating a customer assistance fund and stabilizing rate increases.

The $2.24 billion in bonds drew $26 billion in orders, prompting positive headlines that the county hadn’t seen in decades.