Red Oak, TX Limited-Tax Debt Rating Raised To 'AA' From 'AA-' On Rising Fund Balance; Series 2021A Debt Rated 'AA'

FARMERS BRANCH (S&P Global Ratings) July 21, 2021--S&P Global Ratings has raised its long-term rating on the City of Red Oak, Texas' limited-tax debt to 'AA' from 'AA-'. At the same time, we have assigned our 'AA' rating to the city's $4.3 million combination tax and revenue certificates of obligation series 2021 and $1.2 million tax notes series 2021A. The outlook is stable. "The upgrade reflects Red Oak's rising fund balance in the past few years, as well as its stable fiscal performance" said S&P Global Ratings credit analyst Andy Hobbs. The upgrade to 'AA' reflects the city's rapidly growing tax base, increase in available fund balance that is supported by strong fiscal management practices, and an expectation that future

...July 21, 2021 FARMERS BRANCH (S&P Global Ratings) July 21, 2021--S&P Global Ratings has raised its long-term rating on the City of Red Oak, Texas' limited-tax debt to '##' from '##-'. At the same time, we have assigned our '##' rating to the city's $4.3 million combination tax and revenue certificates of obligation series 2021 and $1.2 million tax notes series 2021A. The outlook is stable. "The upgrade reflects Red Oak's rising fund balance in the past few years, as well as its stable fiscal performance" said S&P Global Ratings credit analyst Andy Hobbs. The upgrade to '##' reflects the city's rapidly growing tax base, increase in available fund balance that is supported by strong fiscal management practices, and an expectation that future debt will be issued strategically and will not place a significant burden on the district's fiscal metrics nor its liquidity. Red Oak continues to benefit from its favorable location in the greater Dallas-Fort Worth metropolitan statistical area, as well...

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