Moody's Investors Service said it has upgraded to Aa2 from Aa3, the city of Katy, Texas's general obligation bonds, affecting $9.3 million in rated debt.
The bonds are secured by a continuing ad valorem tax levied, within the limits prescribed by law, against all taxable property within the city.
The upgrade reflects the city's stable and expanding tax base, trend of sound financial operations coupled with above average reserve levels, and a manageable direct debt burden with rapid principal amortization and limited near term borrowing plans.
Strengths include sound financial operations with ample reserves; manageable direct debt burden with rapid principal amortization and limited near term borrowing plans; and continued growth trends in taxable value.
