Gilbert senior and subordinate revenue bonds upgraded by Moody's
Certain Gilbert revenue bonds have been upgraded to the highest rating possible from Moody's Ratings.
Independent Newsmedia/Tom Blodgett
After concluding a thorough review, Moody’s Ratings has upgraded Gilbert’s Excise Tax Revenue Bonds from Aa1 to Aaa, the highest rating level possible.
The upgrade on the ETRO bonds, both the senior pledged revenue bonds as well as the subordinate lien revenue bonds, reflects Gilbert’s thriving suburban economy, growing population, and ongoing additions to housing and commercial investment, according to a report by the agency.
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After concluding a thorough review, Moody’s Ratings has upgraded Gilbert’s Excise Tax Revenue Bonds from Aa1 to Aaa, the highest rating level possible.
The upgrade on the ETRO bonds, both the senior pledged revenue bonds as well as the subordinate lien revenue bonds, reflects Gilbert’s thriving suburban economy, growing population, and ongoing additions to housing and commercial investment, according to a report by the agency.
“This is a huge recognition of the great work being done not just by our Finance and Budget departments, but by the entire organization which works very hard to make ratings like this possible,” Town Manager Patrick Banger said.
Moody’s is one of the national credit rating agencies who regularly reviews Gilbert’s fiscal health and outstanding debt.
The Aaa rating gives consideration to the broad pledge of both local and state-shared revenues, including sales tax, state revenue sharing, state vehicle license taxes and local business, franchise, and park and recreation fees.
In combination, these revenues represent nearly half of Gilbert’s governmental revenue. For the past nine years, Gilbert’s pledged revenues have shown strong average annual growth of more than 8.6%, with no declines even during the COVID pandemic.
Moody’s found Gilbert’s outlook to be stable with extremely strong finances, a robust available fund balance ratio and financial performance, and a strong management team.
Resident incomes are also expected to remain well above average, contributing to favorable growth in local spending and sales tax revenue.
Moody’s anticipates Gilbert’s continued growth in the local economy will support the town well into the future.
Those who wish to learn more or view the full report can do so here.
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