City of McAllen Maintains Strong ‘AA+’ Rating from Fitch Ratings, Outlook Stable
Written by Post Public Information Representative, Nov 9, 2024, 0 Comments
Courtesy Xochitl Mora,
(McAllen, Texas)-The City of McAllen’s financial strength and stability have been affirmed by Fitch Ratings, which recently rated McAllen’s Issuer Default Rating (IDR) and its outstanding General Obligation (GO) bonds at a robust ‘AA+’ once again. The rating, one of the highest available, underscores McAllen’s resilient financial position, supported by sound fiscal management and a stable outlook for the city’s economy and operations.
Fitch Ratings’ affirmation includes:
· An Issuer Default Rating (IDR) of ‘AA+’ for the City of McAllen.
· A rating of ‘AA+’ for approximately $86 million in outstanding General Obligation (GO) bonds.
· A rating of ‘AA+’ for approximately $27.5 million in outstanding Certificates of Obligation (COs).
The ‘AA+’ rating reflects McAllen’s strong financial flexibility, prudent budgetary practices, and an overall stable economic outlook. According to Fitch, the city’s financial standing is bolstered by a consistent tax base and steady revenue growth, as well as a conservative approach to spending and debt management. The Stable Outlook emphasizes that McAllen’s credit profile is expected to remain robust in the coming years.
“This affirmation by Fitch Ratings validates McAllen’s commitment to responsible financial stewardship and economic resilience,” said Mayor Javier Villalobos. “The ‘AA+’ rating is a testament to our city’s careful planning, fiscal responsibility, and dedication to maintaining a high standard of public service while strategically investing in our community’s growth and development.”
McAllen’s ‘AA+’ rating places it among a select group of cities in Texas and across the nation with similarly high ratings, demonstrating investor confidence in McAllen’s long-term financial health. This rating benefits the city by reducing borrowing costs, thereby allowing more funds to be directed towards essential infrastructure projects, public safety, and other initiatives that enhance the quality of life for McAllen residents.
As McAllen continues to experience economic expansion, particularly in the medical, retail, ecotourism, education and residential sectors, city leaders are focused on maintaining fiscal strength while pursuing initiatives that support a vibrant, sustainable future for all who live and work in the city.
