Moody's Ratings assigns Aa1 to Rio Rancho, NM's GO bonds

Moody’s Investors Service has upgraded the general obligation (GO) bond rating for the City of Rio Rancho, New Mexico, to Aa1 from Aa2, reflecting continued financial discipline. This upgrade follows a series of prior enhancements to the city’s credit profile, including 2022 rating upgrade of GOULT bonds to Aa2 from Aa3.

The rating action underscores Rio Rancho’s strong revenue performance, robust debt service coverage, and prudent financial planning, including establishment of reserve balances and a permanent fund. These measures have contributed to the city’s ability to maintain stable operations and manage long-term obligations effectively.

Mayor Gregg Hull noted that the upgrade is a recognition of commitment to sound fiscal policies and transparent governance. Improved credit ratings can result in lower borrowing costs for the city, potentially reducing the financial burden on taxpayers.

The upgrade aligns with broader trends in New Mexico, where the state recently received Aa1 issuer rating from Moody’s, reflecting its strong fiscal stewardship and diversified revenue base.