Standard & Poor upgrades city bond rating

Standard & Poor's ratings services have upgraded the city of Tomball's bond credit rating by two positions.

The city of Tomball had a previous rating of AA- by Standard & Poor. After being re-evaluated, its bond credit rating now stands at AA+, Tomball City Manager George Shackelford said. Anytime the city sells bonds it gets rated by Standard & Poor to determine the city's latest financial situation. In this instance, the city has not sold any bonds and has no plans to issue any, but it was re-evaluated by Standard & Poor as it is something the ratings service does periodically, Shackelford said.

"We got a notice that they upgraded our bond rating from a AA- to a AA+, which means our rating jumped two positions," Shackelford said. "This is exceptional and in the bond market arena, it means a lot. It's like jumping your individual credit score from 500 to 750."

Shackelford said the improved rating is beneficial to the city in the event the city were to sell bonds, it would get a much better interest rate.

When determining a city's rating, the ratings service looks at a number of factors. The rating reflects the assessment of factors, such as the city's economy, housing market, location, employment opportunities and major employers within the city.

The bump in the bond credit rating is in large part because of the city's council and staff, Shackelford said.

"The upgraded rating is a compliment to the council and the city staff for adopting good budgets," he said. "In a city our size, this rating is elite and there are very few cities and governing agencies in this category."

Magnolia City Council

Meets at 7 p.m. on the second Tuesday of every month. Its next meeting is scheduled for April 8. 18111 Buddy Riley Blvd., Magnolia