Fitch Ratings has assessed the Town of Parker’s credit rating for its 2006 sales and use tax bonds as “AA,” a stable outlook. The rating, defined as very strong, is one of the agency’s highest grades.
Sales tax revenue bonds, which stand at approximately $11.4 million from the 2006 fiscal year for Parker, provide communities the opportunity to finance the development of major projects. Among the ventures financed during the 2006 fiscal year was the Parker Fieldhouse.
Fitch’s “AA” rating means that the agency views the likelihood of the Town meeting its financial obligations as very strong. Several key factors were behind the high grade, including:
• Above-Average Economic Indicators: The Town exhibits above-average economic and demographic factors including high wealth and education levels and low rates of unemployment.
• Strong Financial Flexibility: Large financial reserves held by the Town offset the dependence on high sales tax revenue, which has the potential to be volatile.
• Growing Local Economy: Recent population growth and high demand in the regional housing market have resulted in healthy sales tax revenue gains for the town during the past few years.
• Mixed Debt Profile: Costs for the Town’s debt, pension and other post-employment benefits are affordable and are expected to remain so in the foreseeable future.
The Fitch rating continued a trend of strong recent grades for Parker. Standard and Poor’s also gave the Town a “AA” rating with stable outlook on its sales and use tax bonds for 2006 back in March.