October 2, 2025 | From City of New Orleans
CITY OF NEW ORLEANS ISSUES OFFICIAL STATEMENT IN RESPONSE TO MOODY’S BOND RATING
The City of New Orleans today issued the following statement regarding the recent action by Moody’s Ratings issuing the City a bond rating of A3:
On Oct. 1, Moody’s assigned the City an issuer rating, and general obligation and limited tax bond ratings, of A3. This followed their review of the City’s 2024 audited financial statements, adopted 2025 budget, and subsequent budget ordinances.
Like many other major cities across the country reporting financial deficits in 2025, New Orleans is facing financial challenges due to declining revenues and macroeconomic trends.
City leaders have met with Moody’s multiple times to discuss the issues highlighted in their rating rationale. We are confident that the strategies already in place to stabilize the City’s budget, including cost reduction initiatives, proposed revenue enhancements, and the balanced 2026 Executive Budget presented on Oct. 1, will allow us to move forward in a positive direction in the coming months.
The Administration will continue to work closely with the New Orleans City Council to implement strategies to rebuild financial reserves and balance operations.