Texas Border Business –
Edinburg Texas — The City of Edinburg’ credit rating remains at a resounding ‘AA-‘. The Standard & Poor’s Rating Services and Fitch Ratings, Inc. March Reports confirm the City is financially sound and thriving. Standard and Poor’s and Fitch Ratings are both leading global rating agencies that issue credit ratings based on the debt of public and private companies.
The ratings reflect: Edinburg’ strong management, with “good” financial policies and practices, very strong budgetary flexibility, with a 34 percent reserve fund balance of operating expenditures in 2013 instead of the required 25 percent. The Standard & Poor’s report points out that “overall the City’s market value grew by 4.6 percent over the past year to $3.6 billion.” The Fitch report notes the City has maintained a sound financial position and ending balances have been strong and have increased in recent years.
Mayor Richard H. Garcia says this rating is good news as it will allow the City to get better interest rates should money need to be borrowed. Overall he says, this rating reflects that the City has been prioritizing and spending wisely.
Both reports note that the City’s economy remained stable in spite of a large population growth and an average 6.2 percent unemployment rate. Both reports predict the economy will remain strong with the City’s management practices along with the on-going construction of The University of Texas –Rio Grande Valley and the region’s first medical school as well as other projects currently underway in Edinburg.
