The national organization has more than 6,000 members, including 400 members in Texas. Moody's upgrades City's utility bond rating The City of Richardson received some good financial news from New York for the holidays. Moody's Investors Service has upgraded Richardson's water and sewer revenue bond rating two steps from Baa1 to A2. Moody's Investors Service volunteered to re-evaluate the City's rating in April 1997 based on news about the strengthening of the City's water and sewer fund. Moody's officials said it would continue to watch Richardson's financial stability and may increase the rating again in the near future.
Higher ratings tell the investor the bonds have strong investment attributes.
Moody's reviews financial strength, stability of resources, good management practices, strong financial policies, and economic vitality, among other characteristics. Moody's upgraded Richardson's ranking due to several key factors, including newly developed financial and accounting policies, a vibrant economy that includes the growth of the Telecom Corridor , strong fund balances, and revenues that support expenditure levels in the water and sewer fund, said Richardson's Director of Finance Rosie Vela. The upgrade is also a reflection of a vibrant and diversified Texas economy that is boosting bond ratings for cities throughout the state. For the City and its residents, the new rating means that because the water and sewer revenue bonds are deemed to be more sound, they will be more attractive to investors. This has a positive impact for the City, as it will enjoy a lower interest rate on future bonds, reducing the need to increase utility rates to pay for those bonds.