Standard & Poor’s increases City of Edinburg's credit rating
EDINBURG, TX (KVEO NEWSCENTER 23) — The City of Edinburg’s credit rating has been increased to ‘AA’ from ‘AA-’. The increase was announced by Standard & Poor’s Rating Services, a division of McGraw Hill Financial that issues credit ratings for the debt of public and private companies. The report released on November 26th, attributes the rate increase to how Edinburg manages its Utility System funds and financial debt, how it handled the recent growth, and how it operates on a daily basis. The report says the rating reflects a “trend of strong coverage and liquidity levels, which appear to be sustainable.” It also cites the following:
• Stable customer base growth, driven by the City’s ongoing modest economic base expansion;
• Maintenance of strong debt service coverage and competitive water and sewer rates despite growth pressures; and
• Continued strong system liquidity.
Mayor Richard H. Garcia says the upgraded rating is a reflection of the hard work of City employees tasked with the daily operations of managing the City and providing needed services to its residents. He added it also puts Edinburg in a very good position should money need to be borrowed. The City stands to get much better rates for payback purposes with an ‘AA’ rating.
The Standard & Poor’s report notes that Edinburg has handled its recent growth well both residentially and commercially. The S&P’s outlook is that this growth will continue to boost the local economy.
The report also makes mention that Edinburg’s location along I69-Central will continue to fuel the City’s growth. Edinburg currently has a population of 82,000 people.
View the complete Standard & Poor’s rating by visiting www.standardandpoors.com. Use the ratings search box located in the left column.