Fitch: Local Government Credit Strong, School Districts Drive Negative Actions

Fitch Ratings-San Francisco/New York-19 March 2026: Local government credit quality remains strong, anchored by high reserves, budgetary control, and moderate long-term liability burdens, with most well positioned to address mounting economic- and demographic-driven fiscal pressures, Fitch Ratings says. The weighted average security rating (including bonds backed by dedicated tax revenues) is ‘AA’. Eighty-nine percent of security ratings have a Stable Outlook, 5% have a Positive Outlook, and nearly 6% a Negative Outlook.

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Thu 19 Mar, 2026 – 5:09 PM ET



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