Fitch Ratings assigned an AA-minus rating to Worcester’s $72.1 million of general obligation municipal-purpose loan bonds.
The Massachusetts city expects to sell them competitively on Tuesday.
In addition, Fitch affirmed the same rating on the city’s outstanding $545 million GO bonds.
Proceeds will finance various city, school, and water and sewer system improvements.
The bonds are a general obligation of the city, backed by its full faith and credit, but a state statute limits the property tax levy.
“Worcester’s recent history of sound operating results is a reflection of its strong financial management, prudent fiscal policies and conservative budgeting practices,” Fitch analysts said in the credit report.
Fitch cited the growth in the city’s general-fund reserves and a cushion under the primary and secondary property-tax cap with additional reserves outside the general fund.
According to Fitch, Worcester also benefits from a university and health care presence that offsets high unemployment and wealth levels that are below state and national averages.