Richardson Maintains Highest Credit Rating from S&P And Moody’s for 17th Consecutive Year

For the 17th consecutive year, both S&P Global Ratings and Moody's Ratings have reaffirmed the City of Richardson's "Triple A" credit rating, the highest possible rating for creditworthiness. Richardson has maintained its AAA rating from S&P for 19 years and its Aaa rating from Moody's for 17 consecutive years.

"Maintaining the highest possible credit rating reflects the City's long-standing commitment to responsible financial management and strategic investment in our community," said Richardson Mayor Amir Omar. "These ratings help ensure we can continue delivering essential infrastructure and services in a way that is both cost-effective and sustainable."

The City of Richardson issues debt annually to fund major infrastructure and capital needs, including streets, water and sewer improvements, public safety equipment, and municipal facilities. These programs allow the City to address long-term needs while maintaining a balanced and sustainable financial approach.

"We must meet rigorous standards across several areas including financial performance, reserve levels, economic stability, and long-term planning to achieve and maintain a 'Triple A' rating," said Richardson City Manager Don Magner. "These ratings reflect disciplined budgeting, strong financial policies, and a commitment to long-term planning from our entire team, and I commend our highly trained and committed staff on this continued recognition of excellence."

Moody's and Standard & Poor's use comprehensive methodologies to determine credit ratings. The following excerpts were included in their latest ratings rationale for the City:

Standard & Poor's Rationale

Standard & Poor's assigned its AAA rating with a stable outlook, citing the City's consistent positive financial performance, strong reserves and liquidity, and comprehensive financial management practices. S&P also highlighted Richardson's diverse and mature tax base within the Dallas-Fort Worth region, supported by major employers and continued economic development.

Moody's Rationale
Moody's assigned its Aaa rating with a stable outlook, recognizing Richardson's excellent fiscal management, strong revenue growth and consistent operating surpluses, which have resulted in ample reserves totaling approximately 48 percent of revenue.

Moody's also cited the City's robust local economy, driven by a growing corporate presence and the University of Texas at Dallas, as well as manageable long-term liabilities that are in line with similarly rated peers. The agency expects continued economic expansion and prudent financial management to sustain the City's strong financial position.

2026 Bond Sale
This year, the City plans to sell $27.175 million in 2026 general obligation bonds and $36.97 million in certificates of obligation. Proceeds from the sales will fund improvements to streets, municipal buildings, public safety facilities and equipment, utility improvements, water and sewer infrastructure, and parks and recreation projects.

Key Strengths Highlighted in Both Reports

Both agencies identified several core strengths supporting Richardson's top-tier rating:

• Strong and consistent financial performance with maintained reserves,
• Conservative budgeting and long-term financial planning,
• Diverse and expanding tax base within the DFW metro area,
• Robust local economy supported by major employers and higher education, and
• Stable outlook supported by continued economic growth and disciplined fiscal management.

About Richardson, Texas

Located just north of Dallas, Richardson is a culturally diverse community offering a blend of urban amenities with exceptional suburban service. Richardson benefits from being home to The University of Texas at Dallas, a research powerhouse. UT Dallas' influence is felt in the presence of dynamic businesses in sectors such as advanced manufacturing, biotechnology, finance, software development and research and development.

Richardson's innovation-focused economy supports a stable local government that delivers a high quality of life through strong public services, diverse neighborhoods and accessible transportation options. The City is regularly recognized as one of the best places in the nation to live, work and raise a family.

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