Moody's Investors Service said it has upgraded Midlothian's Community Development Corporation, Texas's sales tax revenue bonds to A2 from A3, affecting $3.58 million in debt.

The bonds are secured by a ½ of 1% sales and use tax dedicated for the use of the corporation.

The rating upgrade to A2 from A3 reflects the corporation's ample debt service coverage, increasing sales tax revenue, limited leverage of the revenue stream and conservative budgeting that has led to solid reserves.

The assignment also takes into account the corporation's satisfactory legal covenants.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.