Moody’s Joins S&P In Assigning Richardson “Triple A” Bond Rating

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Moody’s Investors Service has announced a change of the City of Richardson’s bond rating from “Aa1” to “Aaa”.

April 26, 2010 - As part of Moody’s recalibration of all municipal ratings to their global rating scale, the City of Richardson’s bond rating with the agency has changed from “Aa1” to “Aaa”. Aaa is the highest rating category assigned by Moody’s.

With this rating, along with the City’s rating of “AAA” by Standard & Poor’s, the City of Richardson has the highest ratings assigned by both rating agencies.

“We believe our executive team does an unusually effective job in service delivery and fiscal management, and our bond ratings by these agencies are confirmation that our City is doing things right”, said City of Richardson Mayor Gary Slagel. “These ratings are reflective of the highest level of confidence in the management of our municipal finances, and I’m proud of our community for attaining this distinction.”

During the City’s last rating check, the Standard & Poor’s rating agency reported Richardson as being one of only 14 cities in Texas’ 1,208 communities (and one of only 169 cities in the nation’s 18,500 cities) with a AAA bond rating. High level bond ratings mean the City, and its taxpayers, benefit from the lowest available interest rates on debt issuances, and will help if voters approve a $66 million bond package next month.

Similarly, Moody’s Investor Services has repeatedly noted the positive influence of the City’s long-tenured, stable management team in contributing to the City’s fiscal success.

Richardson has successfully weathered the telecom downturn a decade ago, and strategically diversified its economic development strategy over the last 10 years to help it during this most recent economic downturn better than most of its peer cities. Evidence can be found by the community’s relatively strong sales tax figures, no need to raise taxes to balance the budget and consistently strong fiscal ratings from outside examiners.

This is the second round of good economic news in Richardson in recent weeks. Earlier this month Richardson’s sales tax numbers went from red to black for the first time in more than a year.

Year-to-date sales tax collections are up 6.4 percent compared to last year, and "base to base" collections are up .1 percent during the same time period.

CONTACT: Greg Sowell, Communications Director, City of Richardson, 972-744-4218