The City of Midland has maintained strong credit ratings from Standard & Poors (S&P) and Fitch Ratings ahead of the sale of general obligation bonds and certificates of obligation.
Citing the City’s strong management, budgetary performance, and economy, S&P rated Midland’s General Obligation (GO) bonds and Certificates of Obligation (Cos) as AA+. “We view the city’s management as strong, with good financial policies and practices,” wrote S&P. “Over the past five years, Midland’s available fund balance has exceeded 30% of expenditures, and has exceeded the city’s policy-mandated minimum.” The full report is available here.
Fitch Ratings gave Midland’s GO bonds and COs a AAA rating, their highest designation. Fitch credited the city’s robust financial cushion, expenditure flexibility, revenue-raising capability, and low long-term liability burden as factors. Fitch states that they expect the city “to demonstrate an exceptionally strong degree of gap-closing ability and financial resilience during an economic downturn,” and that “the city practices conservative budgeting and has implemented cost savings initiatives when necessary.
Projecting forward, S&P stated that they expect Midland to maintain AA+ rating for the next two years and Fitch characterized the ratings outlook as Stable. Midland will be issuing $28.92 million in voter-approved GO bonds as part of the 2017 Road Bond program to support road and utility improvements. $23.32 million will be issued as COs to fund water and wastewater system expansion, fire infrastructure, and additional road work.
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Media Contact: Pam Simecka, Finance Director (432) 685-7210