News Release

Fitch Ratings Upgrades the Town of Hilton Head Island’s General Obligation Bonds to Highest Designation

September 18, 2024

Fitch Ratings, one of the largest and most prominent bond rating companies in the U.S., has upgraded the Town of Hilton Head Island’s General Obligation (GO) bond status and its Issuer Default Rating (IDR) to “AAA,” its highest designation.

Fitch’s recent GO upgrade now makes the Town of Hilton Head Island one of only two Fitch AAA rated towns/cities in South Carolina, along with the City of Greenville.

 “This upgrade is the result of significant collaboration amongst our Town staff, Town Council members, and our mayor. We remain committed to maintaining healthy financial practices so that we can continue moving forward with those projects and initiatives that matter most to those who love this island,” said Marc Orlando, Hilton Head Island Town Manager.

According to Fitch, the increase in rating derives from the Town’s financial resilience due to healthy reserve levels, disciplined spending habits and financial controls, low overall debt and net pension liability, and overall excellence in financial management. In addition, the Town’s commitment to diversification of its revenue streams beyond property taxes was also noted as positive.

The upgrade in ratings also speaks to the overall health of the local economy and includes factors such as high market value per capita and low unemployment. According to Fitch, "despite the tourism dependence, the town's economy has historically demonstrated resilience during periods of economic stress with minimal impact on financial operations…management's experience and ability to rebound from storms is notable and has mitigated significant impacts to financial operations."

For more information about rating methodology or to access the full report, please visit fitchratings.com.