FITCH Affirms Harlingen Rating at "A+"
Fitch Ratings has affirmed its “A ” rating on the City of Harlingen’s general obligation bonds and certificates of obligation. Their Rating Outlooks is “Stable.”
According to an October 6, 2009 news release from Fitch, “the 'A ' rating reflects the city's stable financial history and healthy fund balances, an increasingly diversified economic base with unemployment levels below the national average, and a moderate debt burden and manageable additional borrowing plans.”
“The area has long been linked to the agriculture, tourism, trade and manufacturing sectors. Wealth levels are well below-average compared to the state, but in line with those of other border communities. The area's very low cost of living further offsets this risk. However, the local economy continues to diversify, aided by the city's economic development incentive programs and an extensive transportation network that includes the city-owned and operated Valley International Airport,” the Fitch assessment continued.
“The city is slowly positioning itself as a regional healthcare hub. The Regional Academic Health Center, a branch of the University of Texas-San Antonio Health Science Center, has brought a nationally recognized institute of health science education and research to the Valley. The South Texas Veterans Administration Health Care Center at Harlingen was recently completed, and a $40 million surgical clinic to supplement the center is under construction and scheduled to open in October 2010,” according to Fitch.
“Several large retail projects are in various stage of development, and corporations like United Launch Alliance (a joint venture between Boeing and Lockheed Martin), Dish Network, Aloe Laboratories, and Penske Logistics have recently located or expanded within the city. Fitch views these developments favorably, as they should promote stability and attract higher quality jobs to the region. Unemployment has risen over the prior 12 months but at 9% in July 2009 is lower than the national average,” the report continued.
“Expanding companies want to locate in communities that have a positive business climate and the Fitch rating proves the City of Harlingen is a growing community that manages its affairs in a businesslike fashion,” according to Bill Martin of the Harlingen Economic Development Corporation.
Fitch Ratings is a leading global ratings agency.
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For additional information contact:
Bill Martin
Chief Executive Officer
Harlingen Economic Development Corporation
(956) 216-5085 (direct)