Rowlett one of 22 cities in Texas to get an upgrade in its bond ratings

by PegNews wire

ROWLETT — Standard & Poor's Ratings Services has raised the ratings on general obligation bonds for the City of Rowlett from A+ to AA-.

"I am very proud of the strides this City has made over the past couple of years," said Mayor John Harper. "The focus on fiscal responsibility, adherence to fund balance policies, and long range financial planning positively affected this rating increase which will save the City hundreds of thousands of dollars in interest expense on future bonds."

Director of Finance and Administration Brian Funderburk explained that the rating adjustment is designed to better reflect each city's position in the long-term credit market relative to both corporate and municipal issuers.

"We are extremely excited about this upgrade," said Funderburk. "This will certainly help the City save on interest costs when we are ready to issue more bonds in the future."

The agency raised the ratings of 26 municipalities in Texas, Alabama, Tennessee, and Kansas, based on a qualitative assessment in conjunction with credit ratio analysis.

In a statement issued by Standard & Poor’s, credit analyst Paul Jasin stated, "These are municipalities whose credit profiles are generally stronger than a review of just their applicable credit ratios might otherwise indicate."

Other Texas municipalities that received an upgrade in their bond ratings include: Colleyville, Crowley, Dickinson, Duncanville, Ennis, Euless, Farmers Branch, Granbury, Grapevine, Hedwig Village, Hickory Creek, La Porte, Round Rock, Rowlett, Sherman, Southlake, The Colony, Tomball, Watauga, Weatherford, Webster, White Settlement, and Woodway.

Source: City of Rowlett