Moody's Investors Service said it has upgraded to Baa2 from Ba1 the rating of the city of Bridgeport, Texas's general obligation limited tax debt.
The upgrade affects roughly $11.3 million in Moody's rated debt. The rating also takes into consideration roughly $3.0 million in parity debt outstanding which is not rated by Moody's.
The bonds are payable from the levy and collection of a continuing, direct, annual ad valorem tax, within the limits prescribed by law, on all taxable property located within the city.
The upgrade to Baa2 reflects improvement in the city's financial performance and reserve position which is partly the result of new management practices and conservative budgeting.
The upgrade also reflects better than expected sales tax collections, modest growth in the city's small tax base, and an above average debt burden. The rating also reflects finalized restructuring of a $3.0 million liability associated with the local hospital.
