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Moody's Investors Service has assigned an Aa2 rating to the City of Missouri City's $18.77 million General Obligation Improvement and Refunding Bonds, Series 2022. Moody's maintains the Aa2 issuer and General Obligation Limited Tax (GOLT) ratings on the city's outstanding $158.6 million in total debt, post-sale. The issuer rating is equivalent to the city's hypothetical general obligation unlimited tax rating (GOULT).
An Aa2 rating is the third-highest, long-term credit rating that Moody’s assigns to fixed-income securities, such as bonds. The rating suggests a municipality is unlikely to default on its debt repayments.
City Manager Charles Jackson was pleased by the designation. “The resultant rating is a very positive reflection on not only the vibrant economic condition of our city, but also the hard work and conservative stewardship of our citizens’ tax dollars,” he said. “Everyone involved – from our great staff in the Finance Department to all who will see the positive benefits of the many projects this bond will fund – can be proud of this positive assessment of our city and its operations.”
Moody’s said the Aa2 issuer rating “reflects the City's sizeable and growing tax base with above-average resident income levels, benefiting from its proximity to Houston and healthy reserve levels maintained by solid financial performance and policies. The rating further incorporates the city's above-average but manageable debt and fixed cost burdens. Further consideration for the rating includes the expectations that the city's debt profile will remain elevated given the projected new debt issuance through the next five years.”
The Aa2 GOLT rating is the same as the Moody's issuer rating reflecting the city's significant taxing headroom under the limited tax cap, offsetting the lack of full faith and credit pledge, and inability of council to override the statutory limitation.
The bonds constitute direct obligations of the City, payable from the proceeds of a continuing, direct, annual ad valorem tax levied, within the limits prescribed by law, on all taxable property within the city.
Proceeds from the sale of the bonds will be used to refund a portion of the city's outstanding debt to achieve debt service savings and for the improvement of utility infrastructure, park and streets mobility projects, and public facilities projects.
For more updates, please watch the City website: www.missouricitytx.gov, like us on Facebook—fb/MissouriCityTX, follow us on Twitter, Instagram and Snapchat—@MissouriCityTX and Nextdoor, watch Missouri City Television (Ch. 16 on Comcast and Ch. 99 on AT&T) or download the MCTX Mobile app (available for free in Google Play and the Apple app store).