Tampa, Florida's sales and utility tax bonds were upgraded to Aa1 from Aa3 by Moody's Ratings and the outlook is stable.
The upgrade affects Series 2016 and 2020 sales tax refunding and improvement bonds and Series 2012A and C utilities tax and Series 2010A & B utility tax revenue bonds.
"That's great news, and it reflects the outstanding work and commitment of our city council and my administration to keep Tampa on rock-solid financial footing," said Tampa Mayor Jane Castor.
According to Tampa's fiscal 2023-2024 annual comprehensive financial report, the city had $82.8 million of these bonds outstanding as of Sept. 30, 2023.
"The Aa1 rating of the city's sales tax bond, the same level as the city's issuer rating, reflects the broad nature of the pledge coupled with good maximum annual debt service coverage that exceeds two times," Moody's said.
The city's pledged sales tax revenues exhibit limited volatility and have had a 10-year average growth rate around 7.43%, Moody's said.
The agency used the same rationale for the utility tax bonds.
Fitch Ratings rates the utility tax revenue bonds AA-plus and the sales tax revenue bonds AA. In a report from November 2023, Fitch gave similar reasons for the ratings as Moody's.
Fitch's outlook on the utility tax bonds is positive, since they are capped at the city's issuer default rating of AA, which has a positive outlook. The agency's positive outlook on the city's IDR is due to the expectation of strong revenue growth and continued high reserves.
Fitch upgraded the subordinate debt of
Neither S&P Global Ratings nor Kroll Bond Ratings Agency rates the bonds.
Moody's upgrade comes after state groups in June endorsed an
