The City of Garland and Garland Power & Light (GP&L) have earned positive bond ratings from multiple agencies.
Fitch Ratings has assigned an AAA rating to the City of Garland’s $16.7 million combination tax and revenue certificates of obligation, series 2020, which is the highest bond rating possible. Also, Fitch considers the city’s rating outlook as stable, GP&L noted in a May 19 news release.
Fitch’s analysis indicates its expectation that the city will be able to maintain healthy financial flexibility through economic cycles, including the current downturn as a result of the coronavirus pandemic.
Fitch cited Garland’s broad budgetary tools, supplemented by a healthy reserve position, in addition to its diverse revenue base.
Fitch has also assigned a favorable AA- rating to GP&L’s revenue refunding bonds, series 2020, and reported that GP&L is a competitive power provider with low operating risk and a stable financial profile.
In addition, Standard & Poor’s assigned the City a AA+ for tax-supported debt, while Moody’s Investors Service gave an Aa3 rating for Electric Bonds.
“Quality bond ratings and stability outlooks allow the city to issue debt for capital projects at a lower cost, saving taxpayers money,” GP&L noted.