Strong Financial Management Results in AA+ Ratings for Revenue Bonds
Sugar Land, Texas – Standard & Poor’s recently upgraded Sugar Land’s water and sewer revenue bonds from AA to AA+, a sign of strong financial management that translates to taxpayer savings. Fitch Ratings also assigned an AA+ to Sugar Land.
The ratings will affect the scheduled sale of $22 million on Feb. 21 for numerous water and wastewater projects throughout Sugar Land.
Bond ratings reflect a City’s creditworthiness and are based on economic base, financial indicators, outstanding debt and management policies and practices.
A City’s bond rating is similar to a consumer’s credit score; a higher rating leads to better offers of credit and lower interest rates.
Standard & Poor’s and Fitch credited the strong financial performance of Sugar Land’s utility system for the AA+ ratings. The bond rating agencies also noted:
● a diverse service area with high wealth and income levels, good
growth patterns and low unemployment;
● competitive water and wastewater rates;
● an affordable capital improvement program;
● strong operations; and
● comprehensive long-range financial and capital planning.
“These excellent ratings are the product of City Council’s guidance and staff’s commitment to ensuring sound financial oversight of City resources,” said City Manager Allen Bogard. “The AA+ rating demonstrates confidence in the City’s conservative budgeting practices and validates that our proactive financial management is a key to our success.”
The revenue bond ratings are separate from the AAA ratings currently assigned to the City’s tax-backed debt.