The city of Wilmington has gotten an upgrade from Fitch Ratings for a series of limited obligation bonds (LOBs). The higher the rating, the less it costs the city to borrow money.

Fitch Ratings assigned an “AA+” rating to nearly $49 million in LOBs. This bond issue, series 2016, will be sold on a negotiated basis April 13, according to a news release. It will allow the city to refinance existing debt, saving money.

This equates to a “stable” rating outlook, up from a “positive” rating outlook, according to Fitch.

The ratings agency also upgraded Wilmington’s $21 million in general obligation bonds (GOs) from “AA+” to “AAA,” the release added. The rating of $150 million in certificates of participation (COPs) and LOBs was raised from “AA” to “AA+.”

AAA ratings, the highest credit quality, denote the lowest expectation of default risk, Fitch officials say. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.

In evaluating the security of the bonds, Fitch officials noted that Wilmington’s LOBs and COPs are payable from installment payments made by the city, equal to debt service, subject to annual appropriation. The bonds are also backed by a deed of trust on certain governmental facilities.

Factors that influenced Wilmington’s higher ratings, according to the release, included:

• its “robust financial profile,” including revenue and spending flexibility and ample reserve levels
• its role as a regional economic hub, with diverse business enterprises and a large government and health care presence
• its moderately low long-term liabilities.

Not only will the city's borrowing costs be lower with the higher ratings, city spokeswoman Malissa Talbert said. Historically low interest rates will also make it cheaper to borrow now. ,

"We will get additional savings on the refinancing of bonds, and on new bonds we're issuing," she said Monday afternoon.