Fitch Ratings has affirmed the City of Midland's top credit rating, noting that the local government entity's rating outlook appears stable despite economic uncertainty.
Prudent fiscal management, modest overall debt levels, and a diverse tax base were cited as key rating drivers behind the rating, which was released earlier this month.
The rating report stated that the City of Midland's debt burden is "moderately low," with a "manageable capital plan." City management and elected officials have strategically set aside a portion of increased sales tax receipts from previous years to spend on one-time projects and to fund balance reserves, therefore avoiding dependence on the volatile revenue source that is now declining with the decrease in oil prices and activity. Despite the sometimes uncertain nature of the energy sector, the city's "prudent fiscal practices and conservative budgeting" leads to a stable financial outlook for the municipality, according to the report.
By obtaining the highest issuer credit rating, the City of Midland is able to receive the lowest interest rate possible when selling bonds for capital projects. This in turn allows the City to maintain low property tax rates.###
Media Contact: Public Information Officer Sara Bustilloz