“The outlook revision is based on changes to the city’s policies and debt issuance plan that have reduced our previous concerns about more aggressive borrowing that could have further weakened the city’s debt profile,” S&P wrote in its rationale summary.
The rating agency also said it viewed the city’s management conditions as very strong with strong financial processes.
“We are extremely pleased with the upgraded financial outlook,” Irving Chief Financial Officer Max Duplant said in a news release. “The rating allows us to sell bonds at a lower interest rate, which in turn allows Irving to build new projects at less cost, saving taxpayers money on higher rates. Over time, interest savings will total millions of dollars.”
Irving currently has some of the lowest property tax rates and fees in the region.
S&P says it does not expect to change the rating within the two-year outlook horizon, and additionally attributes Irving’s continued AAA GO rating to the city’s large corporate tax base, formal investment and reserve policies, and strong general fund reserves.