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