Moody's Investors Service has upgraded to Aaa the city of Coppell, Texas's, general obligation bond rating.
At the same time, Moody's assigned a Aaa to the city of Coppell's $12 million general obligation refunding bonds, Series 2013, and $9.9 million combination tax and limited surplus revenue certificates of obligation, Series 2013.
Proceeds from the sale of the refunding bonds will be used to refund certain maturities of the city's Series 2004 and 2006 bonds for an expected net present value savings in excess of 10%. The certificates of obligation will be used to make street and drainage improvements throughout the city.
The bonds and certificates are secured by an annual ad valorem tax levied against all taxable property in the city within the limits prescribed by law.
The certificates are additionally secured by a limited pledge (not to exceed $1,000) of the surplus revenues of the city's waterworks and sewer system.
The upgrade to Aaa reflects the strong underlying credit quality of the city including a moderately sized tax base with a favorable location, a history of strong financial performance that have yielded ample reserves, strong socio economic indices comparable to the medians for the rating category, and a manageable debt portfolio with a direct debt burden that is somewhat high for the rating category.