Posted 7:30 pm Saturday, December 22, 2012
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Tyler’s AAA bond rating reaffirmed
Staff Reports
The city of Tyler’s AAA bond rating has been reaffirmed by Standard & Poor’s Ratings Services, according to a news release from the city.
The city of Tyler’s AAA bond rating has been reaffirmed by Standard & Poor’s Ratings Services, according to a news release from the city.
Standard & Poor’s credit ratings express the agency’s opinion about the ability and willingness of an issuer, such as a corporation or state or city government, to meet its financial obligations in full and on time, according to their website. The AAA rating is the highest the company awards, and means that a company or a government entity has an extremely strong capacity to meet financial commitments, the website states.
“To initially receive the AAA bond rating in 2009 was truly a remarkable achievement for our community,” City Manager Mark McDaniel stated in the release. “However, to have it reaffirmed following these tough economic times is extremely rewarding and is a testament to the fiscal discipline embraced by our community,” he said.
In their report, Standard & Poor’s cites the following as underlying factors in reaffirming the city’s bond rating: Tyler’s status as the regional trade, service, and health care center for much of northeast Texas; Tyler’s strong wealth levels and adequate income levels partly due to a significant student population; consistently very strong financial position; the city’s strong financial management policies; and direct debt burden that is expected to remain very low because of a dedicated sales tax that provides cash funding for essentially all of the city’s tax-supported capital needs, according to the release.
Mayor Barbara Bass said she was pleased to see the city’s financial management and diverse local economy recognized.
“Not only does the improved rating have significant financial implications for future bond issues, but the rating demonstrates that the financial decisions that the City has made over the last decade were the right things to do,” she said in the release.
The rating can be directly attributed to the quality leadership of the city and local, diverse economy, Steven Adams, managing director of Specialized Public Finance, the city’s financial advirsors, said.
In their report, Standard & Poor’s cites the following as underlying factors in reaffirming the city’s bond rating: Tyler’s status as the regional trade, service, and health care center for much of northeast Texas; Tyler’s strong wealth levels and adequate income levels partly due to a significant student population; consistently very strong financial position; the city’s strong financial management policies; and direct debt burden that is expected to remain very low because of a dedicated sales tax that provides cash funding for essentially all of the city’s tax-supported capital needs, according to the release.
Mayor Barbara Bass said she was pleased to see the city’s financial management and diverse local economy recognized.
“Not only does the improved rating have significant financial implications for future bond issues, but the rating demonstrates that the financial decisions that the City has made over the last decade were the right things to do,” she said in the release.
The rating can be directly attributed to the quality leadership of the city and local, diverse economy, Steven Adams, managing director of Specialized Public Finance, the city’s financial advirsors, said.
