As a result of the City of Rio Rancho’s credit quality, strong revenue performance, and debt service coverage levels, Moody’s Investors Service has upgraded the rating on the City of Rio Rancho’s senior lien Gross Receipts Tax (GRT) revenue bonds ($5.9 million) from Aa3 to Aa2, and the rating on the city’s subordinate lien GRT bonds ($19.3 million) from A1 to Aa3.
That means the city can get lower interest rates on its borrowing, which saves taxpayers money.
“This is yet another positive affirmation from an international financial institution that Rio Rancho local government’s financial policies and decision-making are being noticed and moving the city in the right direction,” said Mayor Gregg Hull in the announcement.
Bond and/or credit ratings are a way to assess an organization’s financial well-being. Investors use ratings as a risk assessment tool for investing and buying city bonds. Enhanced bond ratings can lead to lower interest rates when the city borrows funding for projects and services.
Over the past two years, the city has taken a prudent approach to financial planning and has adopted policies, such as raising reserve balances and establishing a permanent fund, the announcement said
In April 2022, the City of Rio Rancho announced that, as a result of its strong financial performance and improved financial policies, Moody’s Investors Service had upgraded the city’s general obligation unlimited tax (GOULT) bond rating to Aa2 from Aa3.
For information about Rio Rancho municipal government, visit www.rrnm.gov. Follow city government on Twitter (twitter.com/RioRanchoNM) and Facebook (facebook.com/RioRanchoGov).