Texas.

TEXAS

Moody's Investors Service has upgraded Plano, Tex.'s bond rating to Aa from A1, citing a growing economy and tax base.

New residential construction and business growth have fueled significant tax base increases in the last two years, Moody's said.

Sales taxes also have increased by more than 10% annually in the last five years. Moody's said the general fund balance remains ample.

While the debt burden remains above average to fund the city's capital needs, the debt levels are manageable given the city's rapid bond payout and pattern of tax base growth, the rating agency said.

The city expects to use its remaining $21.9 million bond authorization over the next three years and plans to return to voters for additional authorization in the fall of 1995, Moody's said. The amount of issuance is undetermined, but the new bonds are expected to go for streets, fire, and parks and recreation.

The rating was assigned in connection with the city's issuance of $24.28 million of general obligation bonds.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER