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McAllen Public Utility Receives AA+ Rating

Ratings based on strength of debt service and stable economic outlook

MCALLEN, Texas - The McAllen Public Utility recently went before Fitch Ratings for review on its upcoming bond series and received a rating of ‘AA+,’ viewing “the outlook for this rating as stable.” The bonds, set for $33.1 million, are for outstanding waterworks and sewer system revenue bonds. 

According to the rationale provided by the financial rating agency, Fitch Ratings assigned its ‘AA+’ rating and stable outlook to the McAllen Public Utility based on solid financial metrics, including its annual debt service coverage increasing and its exceptional rate flexibility, noting that “combined utility rates are very affordable and among the lowest of peer utilities, despite recent increases in 2016 and planned increases. The rates fall well below Fitch’s affordability threshold of 2% of media household income.”

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