Moody’s Investors Service has upgraded Missouri City’s issuer rating to Aa1 from Aa2 and the city’s general obligation limited tax rating to Aa1 from Aa2, according to a March 3 news release.
Issuer ratings, also known as bond ratings, let finance firms and buyers know how likely it is that the interest of issued debt will be paid. The three major rating firms are Moody’s, Standard & Poor’s and Fitch Ratings.
Missouri City’s new bond ratings of Aa1 are the second-highest offered from Moody’s and are equivalent to a rating of AA+ under the other two rating systems. The rating was assigned to the 2023 General Obligation Bonds and Combination Tax and Revenue Certificates of Obligation, the release said. According to the news release, the upgrade in bond quality was due to Missouri City’s “rapidly growing economy” with “strong” financial activities.
For residents, this means there is a possibility that Missouri City’s current 2023 series of both bonds and certificates of obligation will receive a higher return on investment, leaving more money in the bank for the city to spend on capital projects like parks, roads and utilities.
“I’m proud of the city’s impressive track record of financial health and fiscal responsibility,” Missouri City City Manager Angel Jones was quoted as saying in the news release. “This better rating lowers the city’s debt cost, which in turn enables us to leverage funds for our residents and stakeholders. Residents, council, staff and other key stakeholders alike should be equally gratified that our city continues to achieve such high financial results.”
The release reiterates that proceeds from the 2023 series of bonds will go towards financing city improvements, and proceeds from the 2023 series of certificates of obligation will go toward financing public works projects including infrastructure.