Tampa's Bonds Soar: Moody's Upgrades City's Financial Strength

In a significant boost to Tampa, Florida's financial standing, Moody's Ratings has upgraded the city's sales and utility tax bonds to Aa1 from Aa3, reflecting the city's rock-solid financial footing. The upgrade affects a range of the city's bonds, including those issued for sales tax refunding, improvements, and utility tax revenue purposes.

Unlocking Tampa's Financial Resilience

Robust Debt Service Coverage and Diversified Revenue Streams

Tampa's sales and utility tax bonds have demonstrated strong maximum annual debt service coverage, exceeding two times, according to Moody's. This robust debt service coverage, coupled with the broad nature of the pledge, has been a key factor in the rating upgrade. The city's pledged sales tax revenues have exhibited limited volatility, with a 10-year average growth rate around 7.43%, further solidifying the city's financial stability.

Fitch Ratings Affirms Tampa's Fiscal Strength

Fitch Ratings has also recognized Tampa's financial prowess, rating the city's utility tax revenue bonds AA-plus and the sales tax revenue bonds AA. Fitch's positive outlook on the utility tax bonds, capped at the city's issuer default rating of AA, reflects the expectation of strong revenue growth and continued high reserves. The agency's upgrade of Tampa International Airport's subordinate debt to AA-minus, citing the airport's expanding market, further underscores the city's economic vitality.

Brightline Train Extension Boosts Tampa's Connectivity

The Moody's upgrade comes on the heels of state groups endorsing an extension of the Brightline train service to Tampa. This strategic infrastructure investment is poised to enhance the city's connectivity, potentially driving economic growth and further strengthening its financial position.

Unwavering Commitment to Fiscal Responsibility

Tampa Mayor Jane Castor hailed the rating upgrade as a testament to the city's unwavering commitment to maintaining a rock-solid financial footing. The mayor's administration, in collaboration with the city council, has worked tirelessly to ensure Tampa's fiscal stability, a key factor in the Moody's decision.

Comprehensive Financial Reporting Transparency

According to Tampa's fiscal 2023-2024 annual comprehensive financial report, the city had $82.8 million of these bonds outstanding as of September 30, 2023. This level of transparency and detailed financial reporting further underscores the city's commitment to fiscal responsibility and accountability.In conclusion, Tampa's bond rating upgrade by Moody's is a significant achievement that reflects the city's strong financial management, diversified revenue streams, and strategic infrastructure investments. As the city continues to navigate the economic landscape, this recognition from a leading rating agency serves as a testament to Tampa's unwavering commitment to fiscal prudence and its bright financial future.