Fitch upgrades Littlefield bond rating - KCBD NewsChannel 11 Lubbock

Fitch upgrades Littlefield bond rating

Posted: Updated:
LUBBOCK, TX (KCBD) -

Fitch has upgraded Littelfield's Bond rating from BB+ to BBB-. 

The increase from BB+ to BBB- means Fitch now feels Littlefield is better equipped to meet their financial commitments.

The new rating also allows the city to receive lower interest rates on their bond debt.

Fitch says the change is due to actions taken by the city to increase revenue and control spending.

City Manager Mike Arismendez says the city's general fund has increased from basically $0 back in 2010 to nearly $400,000.

"We are excited that the financial policies implemented within the last few years have reflected positively in increased bond ratings as well as a stronger financial position," Arismendez stated in a news release.

Standard & Poor's Ratings Services also raised Littlefield's rating from BB to BBB- back in January.

Arismendez tells us that has allowed the city to refinance their bond debt, saving them around $200,000.

"We are committed to providing prudent and sound fiscal policies that will protect the funds that the public has entrusted to us; Increased bond ratings and positive financial audits are proof that we are on the right track," Arismendez stated.

Fitch had previously rated Littlefield's finances as vulnerable.

The city ran into trouble when prisoners were pulled out of the Bill Clayton Detention Center.

The center has sat empty since 2009, but Arismendez tells KCBD that they are currently in negotiations on a possible lease to house inmates from New Mexico.

An official agreement could be announced in April.

RELATED STORY:

Littlefield faces financial turmoil

Copyright 2014 KCBD. All rights reserved.

Powered by WorldNow

5600 Avenue A
Lubbock, TX. 79404

FCC Public File
publicfile@kcbd.com
806-744-1414
EEO Report
Closed Captioning

All content © Copyright 2000 - 2014 Worldnow and KCBD. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.