^{Credit: City of Galveston}

GALVESTON — Galveston has received high credit ratings from two major agencies as the city prepares to issue approximately $9.44 million in public improvement bonds to finance construction of Fire Station 2.

Fitch Ratings assigned the city an AA+ rating, while Moody’s Ratings assigned Galveston an Aa3 rating following reviews of the city’s financial standing.

The city sought the ratings as it prepares to issue bonds for the new fire station, which Galveston voters approved in November 2025. Credit ratings can affect the interest rates governments receive when borrowing money through bonds, with stronger ratings generally providing access to more favorable rates.

Rating agencies consider factors including a government’s ability to repay debt, existing debt and pension obligations, budget performance, financial stability, management and governance practices and economic conditions.

City officials said the ratings could help Galveston secure favorable borrowing costs for the fire station project and future large-scale infrastructure projects.

“One of my main priorities as city manager has been strengthening the city’s budget and financial policies, as well as building a reserve that can help the city in times of natural disasters,” City Manager Brian Maxwell said. “The scores from the ratings agencies validate those efforts and put us in a good position as we prepare to seek bonds for the construction of Fire Station 2.”

The rating agencies cited several strengths in Galveston’s economy, including tourism, health care, maritime industries and the Port of Galveston, which ranks as the nation’s fourth-busiest cruise port.

The city’s financial policies, experienced management team and reserves were also cited as strengths. According to the city, reserves have remained around 30% of revenue in recent years.

The assessments also identified potential vulnerabilities. The island’s exposure to environmental risks from storms was considered, along with Galveston’s lower median household income compared with other cities.

Despite those factors, the agencies’ ratings indicate a high assessment of the city’s overall creditworthiness as Galveston prepares to borrow for construction of Fire Station 2.