Moody's Investors Service said it has upgraded to Aa3 from A1 the general obligation rating on Midlothian, Texas, affecting $51.6 million in rated outstanding debt.
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The bonds are secured by an ad valorem tax levied on all taxable property within the city within the limits prescribed by law.
The Aa3 rating reflects the city's growing tax base which is expected to continue in the future, strong revenue growth demonstrated through sales tax and property tax performance, and the large financial reserves. The rating also incorporates the city's higher than average, though rapidly amortizing debt burden as the city continues to expand.
