City achieves bond rating upgrade

The City of Aledo announced that, as of Nov. 18, Standard & Poor’s (S&P) has elevated its bond credit rating from AA to AA+, with a stable outlook. This upgrade represents a substantial achievement for the city, enabling reduced interest costs on future debt obligations.

“I was delighted to receive the news of the bond rating upgrade from S&P,” Aledo Mayor Nick Stanley said. “This acknowledgment underscores Aledo's strong governance and our commitment to effective financial management in recent years.”

The upgrade is a result of S&P’s evaluation of Aledo’s growing local economy, which exhibits encouraging prospects for both tax base enhancement and population growth. The city’s solid financial performance, highlighted by reserves exceeding 100% of revenues, is anticipated to continue, city officials note.

S&P acknowledged that Aledo's financial strategy includes a stable ad valorem (property) tax base and ongoing residential and commercial construction, driving double-digit increases in taxable assessed valuation. The city management utilizes historical data to inform revenue and expenditure projections.

City leaders cited that Aledo has established formal policies for investments and reserves while developing strategies to effectively navigate future financial landscapes alongside expected economic advancements.

A detailed analysis and comprehensive report on this upgrade is available online at aledotx.gov/BondRatings.