Moody’s Investors Service has upgraded Yates County’s ratings to Aa3 from A1. The issuer rating is equivalent to the county’s hypothetical general obligation unlimited tax rating (GOULT); there is no debt associated with the GOULT security. The upgrade affects the county’s $2.6 million outstanding debt, all of which is rated by Moody’s.
“The upgrade to Aa3 reflects Yates County’s strong reserves and liquidity, low fixed costs, and long-term liabilities. It also reflects the county’s growing tax base, average resident wealth and incomes, limited local economy and derivation of a significant portion of county revenue from economically sensitive sales tax,” according to a statement released by Moody’s.
Factors that could lead to an upgrade include substantial tax base expansion and improved resident wealth and incomes.
Factors that could lead to a downgrade include a significant reserve decline or tax base contraction and/or decline in local economy.