Forney, Texas – Standard and Poor's (S&P) released a new credit rating for Kaufman County on Friday afternoon, January 24, 2014, and it couldn't have come at a more pivotal moment for the county preparing to sell a portion of their $56 million worth of transportation bonds in February.
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According to the new rating outlined in an S&P release, Kaufman County's general obligation debt rating has been raised two notches from an A- to an A+. The release also states the outlook for the county is stable.
Kaufman County Judge Bruce Wood told inForney.com, “I am delighted with this new rating that reflects a lot of hard work on behalf of a lot of people to improve the financial stability of Kaufman County.”
Additionally, S&P assigned an A+ long-term rating and stable outlook to $29.998 million of the transportation bonds to be sold in 2014. “This should assist us with lower interest rates when we take the bond offering to the market on February 6th,” stated Judge Wood.
"We believe the county's property tax base, which generates the bulk of operating and debt service revenue, will at least demonstrate relative stability over the next few years due to ongoing economic activity stemming from its access to the rapidly expanding Dallas-Fort Worth metropolitan statistical area,” said Standard & Poor's credit analyst Omar Tabani.
“We also recognize that, after negative fund balances in fiscal years 2009 and 2010, the county will likely continue to increase year-end general fund balances gradually,"continued Tabani.
If the county continues to improve and demonstrate a multi-year trend of maintaining stronger general fund balances the rating could continue to improve.
The new rating will levy better interest rates when the bonds hit the market in February – potentially saving Kaufman County taxpayers significant amounts in interest savings.
Kaufman County Judge Bruce Wood told inForney.com, “I am delighted with this new rating that reflects a lot of hard work on behalf of a lot of people to improve the financial stability of Kaufman County.”
Additionally, S&P assigned an A+ long-term rating and stable outlook to $29.998 million of the transportation bonds to be sold in 2014. “This should assist us with lower interest rates when we take the bond offering to the market on February 6th,” stated Judge Wood.
"We believe the county's property tax base, which generates the bulk of operating and debt service revenue, will at least demonstrate relative stability over the next few years due to ongoing economic activity stemming from its access to the rapidly expanding Dallas-Fort Worth metropolitan statistical area,” said Standard & Poor's credit analyst Omar Tabani.
“We also recognize that, after negative fund balances in fiscal years 2009 and 2010, the county will likely continue to increase year-end general fund balances gradually,"continued Tabani.
If the county continues to improve and demonstrate a multi-year trend of maintaining stronger general fund balances the rating could continue to improve.
The new rating will levy better interest rates when the bonds hit the market in February – potentially saving Kaufman County taxpayers significant amounts in interest savings.