Wednesday, July 23, 2008

Standard & Poor’s upgrades Flower Mound’s bond rating

By Pegasus News wire

FLOWER MOUND — Citing sound financial performance, moderate debt burden, and economic expansion, independent bond rating service Standard & Poor’s (S & P) recently upgraded Flower Mound’s General Obligation bond rating from AA- to AA+. The two-level increase honors Flower Mound with S & P’s second highest rating.

“The new rating is a strong indicator of the financial community’s confidence in the Town of Flower Mound as an investment,” said Mayor Jody Smith. “The increase reflects our commitment to conservative leadership, quality services, and sound financial planning.”

According to S & P, the change reflects Flower Mound’s continued economic growth and diversification, a strengthened financial position, implementation of financial policies, and the passage of new sales tax levies that could reduce future bonding needs.

“The two-notch upgrade by Standard & Poor's from "AA-" to "AA+" represents the second upgrade to the Town's General Obligation bond rating in the past year. In July 2007, Moody's upgraded the Town's rating from "Aa3" to "Aa2", said Jason Hughes, First Southwest Company Vice President. “As a result of the higher bond rating, the Town receives lower interest rates on long term borrowing, lower overall costs of funds via reduced bond insurance costs, and an expanded market of potential buyers.”

The new ranking represents a ten-year history of increasing bond ratings for the Town and positions Flower Mound among some of North Texas’ highest-rated municipalities. Moody’s Investors Service upgraded Flower Mound’s bond ratings in 2007 from an Aa3 to an Aa2 ranking. In considering the upgrade, Moody’s cited the Town’s conservative approach to budgeting and healthy financial obligations supported by strong management.

Source: City of Flower Mound

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