ANNA — The combination of significant growth, prudent budgetary and financial practices, and affordable debt and pension obligations has resulted in a credit rating upgrade for the City of Anna by Moody’s Investor Service.
The City’s credit rating has been upgraded from A1 to Aa3, resulting in more favorable rates for financing of existing and future debt, a move that will save Anna residents considerable sums of money on debt service.
“The City of Anna enjoys a prime location for residential growth, as companies in the Dallas-Fort Worth area continue to locate and expand,” said City Manager Philip Sanders. “Added to the rising number of rooftops is a correlated surge in retail and commercial activity within our City limits. These are factors that weigh heavily in our favor in upgrading our credit rating.”
In announcing the upgrade, Moody’s analysts cited Anna’s strong performance in single family residential construction, the infusion of retail businesses with high-volume traffic, a conservative approach to budgeting and healthy financial reserves.
“This is very similar to a consumer receiving a higher credit score from the credit bureaus,” said Sanders. “A high credit score usually means lower interest rates on home mortgages or car loans. We now find ourselves in a comparable situation. The credit upgrade from Moody’s will reduce the cost of financing construction of new roads, utilities and municipal facilities in the future.”
Anna has undergone significant growth since the last US Census count in 2010. Since then, the population has increased by 54%, with a current population of just over 13,000. The recent opening of new retail stores and the completion of the widening of West White Street (FM 455) will spur further commercial and retail development.
“We are definitely seeing a substantial increase in both residential and commercial activity, which is one of the factors the rating agencies consider when evaluating our credit,” said Sanders. “At the same time, the City takes a conservative approach to financial matters by adopting prudent budgets and maintaining healthy financial reserves. This also was cited as a credit strength by Moody’s in their report.”