The City of Midland has received strong credit ratings from Standard & Poors (S&P) and Fitch.
Citing the City’s strong management, budgetary performance, and fund balance, S&P rated Midland’s General Obligation (GO) bonds as AA+. “We view the city’s management as strong, with good financial policies and practices,” including “the city finance department’s monthly monitoring and reporting of the current fund budget,” wrote S&P. “Midland’s budgetary flexibility is very strong, in our view,” they added; “over the past five years, Midland’s available fund balance has exceeded 30% of expenditures, and has exceeded the city’s policy-mandated minimum.”
Fitch Ratings gave Midland’s GO bonds a AAA rating, their highest designation. Fitch credited the city’s revenue framework, expenditure framework, long-term liability burden, and operating performance as factors. “The city has historically maintained robust reserve levels throughout recessionary years and energy sector downturns,” stated Fitch. “The city practices conservative budgeting and…exercises considerable expenditure flexibility through significant workforce cost controls.”
Projecting forward, S&P stated that they expect Midland to maintain a AA+ rating for the next two years. Midland will be issuing $100 million in voter-approved GO bonds over the next five years, to support road and utility improvements.
Media Contact: Pam Simecka, Finance Director (432) 685-7210