MISSOURI CITY, TEXAS (February 27, 2023) – Moody's Investors Service has upgraded the City of Missouri City’s issuer rating to Aa1 from Aa2 and the City's general obligation limited tax (GOLT) rating to Aa1 from Aa2. Concurrently, Moody's has assigned an Aa1 rating to the city's $18.3 million General Obligation Bonds, Series 2023 and $13.74 million Combination Tax and Revenue Certificates of Obligation, Series 2023. Inclusive of the new sales, the City's total outstanding debt (governmental and business-type activities) will total approximately $211.2 million.
Aa1 is Moody’s second-highest bond rating possible. The score signifies that the issuer is financially sound and has adequate revenues and cash reserves to pay its debts. The risk of default for investors or policyholders is low.
City Manager Angel L. Jones welcomed the higher rating. “I’m proud of the City’s impressive track record of financial health and fiscal responsibility,” she said. “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.”
According to Moody’s, “The upgrade of the issuer rating to Aa1 reflects the City's rapidly growing economy favorably located southwest of Houston. Population growth continues to be robust, yielding strong residential construction. Financial performance is strong, exhibiting steadily increasing revenues in both governmental and business-type activities.”
The Aa1 rating on the city's GOLT bonds is at the same level as the issuer rating, reflecting the city's ample taxing headroom, which offsets the limitation under the property tax caps.
Proceeds from the bonds will be used to finance city improvements that include drainage projects, public facilities, streets and parks. Proceeds from the certificates will be used to cover the construction of public works related to the construction of utility infrastructure.