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For Immediate Release

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August 12, 2013  

Comptroller Susan Combs Announces Highest Ratings for Texas Short-Term Notes

(AUSTIN) — Wall Street ratings firms have given their highest ratings to this year’s Texas Tax and Revenue Anticipation Notes (TRANs). These annual, one-year notes are sold to help fund school payments and manage cash flow between the start of a fiscal year and the arrival of tax revenue later in the year.
 
Texas’ 2013 TRANs are rated SP-1+ by Standard & Poor’s, F1+ by Fitch Inc and MIG 1 by Moody’s Investors Service. This year’s $7.2 billion TRAN sale will take place Aug. 27.

"These top ratings reflect the economic strength of Texas as we continue to add jobs and put out the welcome mat for businesses,” said Texas Comptroller Susan Combs.  “Texas benefits from a diverse mix of industries and confidence in our state’s economy. Wall Street recognizes the importance of the strong revenue growth and conservative budgeting principles we have in Texas.”  

Standard & Poor’s commented, “Texas' economic performance continues to significantly outpace the nation's. By almost every significant measure, the Lone Star State's economy continues to perform better than that of most other large states, and is among the fastest growing economies in the nation overall.”

In awarding its highest rating, Fitch analysts credited conservative operations and forecasting, stating, “State financial operations are generally conservative, and cash balances are growing even as cash flow borrowing needs have remained high.”

Moody’s Investors Service noted Texas’ strengths including “repayment set-asides that begin five months prior to note maturity” and “the state's strong cash management procedures.”

Texas has sold TRANs since fiscal 1987. This year’s TRAN sale will take place Tuesday, Aug. 27, from 9–10 a.m. CDT at www.trantexas.com. The notes will be repaid on Aug. 28, 2014.

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