Memphis Center City Revenue Finance Corporation

• Issue Currency: United States of America Dollars
• Announcement Date: 19-Jun-2018
• News: Fitch Ratings has upgraded the following city of Memphis, Tennessee ratings to `AA` from `AA-`: --$157.4 million outstanding general obligation (GO) bonds; --Issuer Default Rating (IDR. The Rating Outlook is Stable. SECURITY The GO bonds are payable by the city`s full faith and credit pledge, payable from property taxes without limitation as to rate or amount. ANALYTICAL CONCLUSION The upgrade of the IDR and GO bonds rating to `AA` from `AA-` reflects the city`s continued operational stability while continuing on its track to fully fund actuarially determined pension requirements by fiscal 2020. The rating is supported by management`s legal ability and willingness to raise revenues to counter fixed cost pressures and maintain strong reserves. Recent city reforms have enabled the city to craft a sustainable plan towards fully funding its annually required pension contribution while reducing both pension and other post-employment benefits (OPEB) liabilities. Economic Resource Base The city, with an estimated 2017 population of approximately 652,000 is the job center for a three-state, four-county metropolitan statistical area (MSA) encompassing jurisdictions in Tennessee, Arkansas and Mississippi. The deep and diverse economic base is anchored in transportation and distribution. Wealth levels are below the state and national averages and poverty levels are elevated at about 28%. Population growth has been stagnant, increasing by less than 1% since the 2010 census.