Garland, Texas - June 20, 2008 -- Two major bond ratings services find the City of Garland’s financial management practices to be worthy of an upgrade in several key ratings.
 
Fitch Ratings has assigned an 'A+' rating to Garland’s $10.17 million electric utility system revenue bonds, series 2008.  Fitch is also upgrading the rating on the city's outstanding electric utility system revenue bonds to 'A+' from 'A'.  Fitch’s rating upgrade reflects Garland's “continued strong financial performance including solid debt-service coverage, consistent cost recovery and a sizable rate mitigation fund.”
 
Meanwhile, Standard & Poor’s Ratings Services raised its rating on Garland’s general obligation (GO) debt to ‘AA+’ from ‘AA’ with a stable outlook on the ratings.  Once again, Standard & Poor’s attributes these actions to the city’s strong financial management practices. 
 
Standard & Poor’s has also raised its rating on Garland’s water and sewer system revenue bonds to ‘AA’ from ‘AA-’.  This rating reflects the city’s “strong history of adjusting rates to maintain strong net margins of all obligations supported by the system and the system’s general creditworthiness.”
 
While the City has typically purchased bond insurance to gain a lower interest rate on its debt, the City will not require bond insurance on the GO bonds because of the rating upgrades.  The GO upgrade will save Garland taxpayers approximately $250,000 over the life of the GO bonds.  Similarly, water and sewer ratepayers will realize about $100,000 of savings on the water and sewer debt while GP&L customers will realize about $50,000 of savings on the electric utility debt.  Additional savings will be realized in future years as more debt is issued for other capital improvements.