Moody’s downgrades Fargo’s credit rating as city faces financial challenges

FARGO — For the first time in five years, Fargo’s credit rating has dropped, a renowned financial analysis institution said.

Moody’s Ratings downgraded Fargo’s credit score from Aa2 to Aa3, the fourth highest score a city can achieve. The rating was announced Tuesday, Nov. 4, in a Moody’s report obtained Friday by The Forum from the city in an open records request.

The rating means the city’s finances are high quality and present a “very low credit risk,” according to Moody’s ranking chart. However, the rating downgrade suggests the city is facing some financial challenges.

Moody’s cited Fargo’s “narrow available fund balance” and “above-median long-term liabilities and fixed costs” as the reasons for this year’s downgrade.

In 2024, Fargo had an available fund balance ratio, or the f