Press Release|Public Finance
KBRA Assigns AAA Rating and Stable Outlook to the City of Indianapolis, Indiana, General Obligation Bonds
18 Aug 2025 | New York
KBRA assigns a AAA long-term rating to the City of Indianapolis, Indiana, General Obligation Bonds Series 2022A and Series 2022B (taxable) issued through the Indianapolis Local Public Improvement Bond Bank. The Outlook is Stable.
Key Credit Considerations
The rating was assigned because of the following key credit considerations:
Credit Positives
- The region’s expanding economy and increasing employment levels foster population gains and a growing resource base.
- Strong fiscal controls and a multi-year budgeting process leads to consistently balanced operations and maintenance of strong reserves well above policy minimums, resulting in significant financial flexibility.
- The City’s modest debt levels and unfunded pension liabilities result in low fixed costs, easing budgetary pressure.
Credit Challenges
- Indiana’s circuit breaker property tax cap presents revenue-raising constraints.
- The City’s demographics exhibit relatively low income per capita and an above average poverty rate, partially reflecting a large student population.
Rating Sensitivities
For Upgrade:
- Not applicable
For Downgrade:
- Significant drawdown of reserves, including the Fiscal Stabilization Fund, below policy minimums without a plan for replenishment within a reasonable period.
- An unexpected increase in capital needs and borrowing, or failure to maintain pension funding levels, either of which results in a material increase in long-term fixed costs.
- Poor performance of tax increment finance districts backed by the City’s moral obligation, resulting in an unexpected need to fund contingent obligations and budgetary stress.
To access ratings and relevant documents, click here.