Written by Staff
Moody's Investors Service has upgraded the City's credit rating from Aa1 to Aaa, the highest bond rating that can be achieved. The City of Coppell is now one of only six cities in the state of Texas with a triple Aaa credit rating from Moody's. The only other Aaa-rated cities in Texas are Austin, San Antonio, Plano, Irving and Richardson.
Key factors for the rating increase point to a strong financial history and sizeable fund balance reserves, the community’s high income levels and how the tax base performed during the last national economic downturn. The City is now Triple AAA credit with Standard and Poor’s and Moody's Investors Services.
The Aaa rating in a normal market will save approximately 10 to 15 basis points or more. On a $10,000,000 issue it is approximately $10,000 to $15,000 a year, or $200,000 to $300,000 over the 20 year life of the bonds. Interest savings is not the only benefit of a Aaa rating. The better the rating, the easier it is to sell in the market, particularly during turbulent times. In 2008 some entities were unable to sell their bonds yet Coppell was able to fund $26,500,000 in bonds related to the Northlake issue based upon the AAA rating from Standard & Poor’s and the previous relative high rating from Moody’s. The upgrade to Aaa from Moody’s will serve to strengthen Coppell’s already strong financial positioning.
Source: City of Coppell