Anna receives upgraded rating from Moody’s
Moody Investor’s Services has given the city of Anna an upgraded issue and general obligation limited tax (GOLT) rating of Aa2. The rating was assigned to the city’s $11.1 million General Obligation Refunding and Improvement Bonds, Series 2021. The city’s GOLT rating had previously been Aa3.
Long-term obligation ratings are opinions of relative credit risk. These rating are divided into nine different lettered categories from Aaa to C, with Aa being the second highest. Financial obligations that fall within the Aa classification are deemed to be of the highest quality and are subject to very low credit risk.
Within each lettered category, Moody’s also assigns each obligation a numerical rating of 1,2 or 3. A ranking of 2 means that the obligation falls withing the mid-range of the lettered classification.
According to Moody’s, Anna’s rating reflects the city’s maintenance of strong and stable operating reserves and manageable leverage at a time of very rapid economic expansion. It noted that Anna’s operating reserves are likely to remain strong due to its use of multi-year forecasting and a conservative formal reserve policy. This fostered the belief that the city will maintain strong credit fundamentals during a period of intense growth, given sound financial policies and limited debt plans.
Anna’s tax base had doubled since 2017. This has been driven in large part by a strong demand for housing coupled with available land, healthy resident income indices and easy access to employment throughout the Dallas- Fort Worth region.
"We are pleased to see Moody's recognizes that our management team is unified on where Anna is going and how to handle the historical growth and economic expansion," City Manager Jim Proce said in a press release announcing the news. "Receiving an upgraded rating is an acknowledgment of the city's sensible financial management and will allow us to save taxpayers money while delivering more services and needed facilities as we grow."