For the 16th year in a row, both Standard & Poor’s and Moody’s credit rating agencies have reaffirmed Richardson’s “Triple A” status, the highest possible rating available for credit worthiness. Richardson has held AAA status from Standard & Poor’s for 18 years, and this is the 16th year in a row the City has received Aaa status from Moody’s.
“Our city’s top-tier ratings from both S&P and Moody’s reflect the strength of our community and the trust our residents place in responsible, forward-thinking leadership,” said Richardson Mayor Bob Dubey. “These top-tier credit ratings affirm our strong financial management, economic stability, and ability to invest in community needs while keeping borrowing costs low, and allows us to continue to make investments that support vital infrastructure, parks, and public facilities that enhance everyday life in our community.”
The City of Richardson sells bonds annually to fund large public projects, like roads, water mains, and other infrastructure, and fire/solid waste and other large-equipment purchases. The bond sales allow the City to address immediate needs and manage financial resources in a way that balances current obligations with future benefits.
To attain "Triple A" status, the City must meet stringent fiscal performance and control standards across multiple factors, including financial stability, capacity to fulfill debt obligations, and economic conditions.
“These ratings are a direct result of the exceptional work and dedication of our City staff, whose commitment to sound financial management and operational excellence continues to deliver strong results,” said Richardson City Manager Don Magner. “Our organization remains focused on efficiency, transparency, and strategic planning to support Richardson’s long-term growth. These endorsements affirm that we are well-positioned to meet the needs of our community while maintaining fiscal health.”
Moody's and Standard & Poor's use comprehensive methodologies to determine credit ratings. The following excerpts were included in their latest ratings rationale for the City:
Standard & Poor’s Rationale
S&P Global Ratings assigned a AAA/Stable rating to Richardson. In its rationale, Standard & Poor’s stated its rating reflected, “…the city’s strong financial management, diverse tax base, and consistent budget surpluses. The city maintains robust reserves, demonstrates proactive cost control, and continues to benefit from economic growth within the Dallas-Fort Worth area.”
Moody’s Rationale
Moody’s assigned a Aaa (Stable) rating to Richardson. In its rationale, Moody’s cited, “…excellent fiscal management, strong reserves… and a robust local economy.”
2025 Bond Sale
This year, the City plans to sell approximately $91.6 million in 2025 general obligation and certificate of obligation bonds. Proceeds from the sales will fund municipal buildings, equipment, utility improvements, and parks projects.
Key Strengths Highlighted in Both Reports
- Sales tax revenues for FY 2025 are outperforming budget by over 11% year-to-date.
- Robust reserve position, with formal minimum reserves of 25% of expenditures.
- Diverse and growing tax base within the Dallas-Fort Worth metro area.
- Solid institutional framework, with effective long-term planning.
- Strong financial management and conservative budgeting.
- Consistent budget surpluses.
- Proactive cost control.
About Richardson Texas
Located just north of Dallas, Richardson is a culturally diverse community offering a blend of urban amenities with exceptional suburban service. Richardson benefits from being home to The University of Texas at Dallas, a research powerhouse. UT Dallas’ influence is felt in the presence of dynamic businesses in sectors such as advanced additive manufacturing, biotechnology, finance, software development, and R&D, as well as hosting incubators for entrepreneurial start-ups. Richardson’s thriving, innovation-focused economy creates numerous opportunities while also supporting a historically stable local government capable of delivering high quality-of-life and exemplary services for a diverse array of neighborhoods and multi-modal transportation options, enabling easy access to the entire DFW Metroplex. The community is regularly recognized in third-party rankings as one of the best places in the nation to live, raise a family, start a career, go to school, buy a home, and retire.
www.cor.net
