The latest bump in the bond rating from Moody’s Investors Services is the highest rating ever awarded to the city of Pflugerville.
The rating is now Aa1, which, according to Moody’s report, “reflects elimination of the credit risk of a guaranteed loan and reflects the city’s large, growing tax base, trend of stable financial performance and manageable pension burden.”
“The city of Pflugerville’s rating has gone up from upper medium to high-quality grade, a significant accomplishment and compliment to the city as a reflection of good financial practices and growth,” Pflugerville Finance Director Amy Good said. “A high rating like this one can mean higher demands for our bonds and may result in lower interest rates and favorable bond pricing in future bond issues. This is a great reflection of our financial health and accounting practices.”
The last rating took place when Pflugerville issued bonds in 2016 for the transportation and parks projects approved by the voters in 2014 and 2015. In fiscal year 2017-18, as the city issues more bonds for roadway projects and utility improvements, the improved rating makes Pflugerville’s bonds favorable in the market.
Other factors in an upgrade include a decline in outstanding debt, and healthy and diverse tax base growth. The city said the recent Pflugerville Community Development Corporation loan restructuring along with strong tax base growth likely contributed to the upgrade.