Denton County maintained its AAA bond rating on outstanding general obligation limited tax debt and received an AAA rating on $125 million Permanent Improvement and Refunding Bonds, which will save money by reducing interest rates on future debt issuances, according to Moody’s Investors Service.
The ratings reflect the county’s ability to repay debt and debt-like obligations without consideration of any pledge, security or structural features. The county has approximately $643.51 million of debt outstanding post-sale. Officials said the outlook is stable.
The ratings also reflect the county’s growing economy, which benefits from its proximity to the Dallas-Fort Worth region and shows strong financial performance and conservative budgeted that has yielded healthy and consistent reserve levels across all governmental and business type funds.
The ratings come as the county prepares to issue the first tranche of $110 million of the $650 million in road construction bonds approved last November.
Though the long-term liability reported on the county’s balance sheet, the manageable ratio and fixed costs ratio that exceeds peers but remains affordable given strong revenue trends.
“This is a report card from outside agencies on the financial priorities of the Commissioners Court and our local economies,” said Denton County Judge Eads.
“In Denton County, we are committed to ensure the best use of taxpayer dollars and truly appreciate voters trust in allowing us $650 million for road construction last November,” he said. “Our fiscally conservative approach has stood the test of time with our bond ratings, which have continued to remain in AAA standing for a number of years with Moody’s and Standard & Poor’s.”