Odessa Restores Aa2 Bond Rating From Moody's

The City of Odessa regained its Aa2 bond rating from Moody's Ratings, potentially lowering borrowing costs for taxpayers and enabling investments in infrastructure and public safety.

Moody's cited Odessa's strong fund balances, conservative budgeting, growing revenues and manageable long-term liabilities. The rating reinstatement follows the Finance Department's effort to bring financial reporting current and strengthen internal processes. Since November 2023, the department completed audits for fiscal years 2022, 2023, 2024 and 2025, submitting the fiscal year 2025 audit by the legal deadline.

Moody's withdrew its rating on June 18, 2024. Fitch Ratings affirmed Odessa's rating on August 8, 2024. The city will not pursue reinstatement with S&P, which was withdrawn on June 6, 2024, based on recommendations from the city's financial advisor.

"Regaining this rating reflects the hard work and commitment of our Finance Department, City staff, leadership team and City Council," Mayor Cal Hendrick said. "We have taken meaningful steps to strengthen Odessa's financial foundation."