Published on August 07, 2024
SAN ANTONIO (August 7, 2024) – The City of San Antonio’s ‘AAA’ general obligation bond ratings were reaffirmed this week by Standard & Poor’s and Moody’s Ratings with a stable outlook. Fitch Ratings announced on July 18, 2024, that it not only reaffirmed the City’s ‘AA+’ bond rating, but that the City’s outlook also remains positive. Rating outlooks fall into three categories: stable, positive, and negative. The positive outlook provides additional information to lenders, investors, or other users about the expected direction of rating movement in the near to medium term. The City’s current financial performance and other related criteria could lead to a potential future rating upgrade.
“Strong bond ratings directly benefit San Antonio residents,” Mayor Ron Nirenberg said. “City Manager Erik Walsh and his team – with the support of City Council – have made these stellar ratings possible through strong fiscal stewardship, ensuring that San Antonio borrows at the lowest-possible interest rates and saving millions of dollars for residents each year.”
The ratings come in anticipation of the sale of general obligation bonds, certificates of obligation and tax notes scheduled for the week of August 19, 2024. The City’s bond ratings are some of the highest ratings of any major City.
“These reaffirmed bond ratings are great news for everyone working for and living within our City,” City Manager Erik Walsh said. “These ratings are also a direct reflection of the decisions made by our Mayor and City Council along with strong management practices and policies that guide our financial and capital planning.”
The City’s strong credit ratings which help to achieve the lowest cost of borrowing are as follows:
| RATING AGENCY | RATING | OUTLOOK |
|---|---|---|
|
S&P
|
‘AAA’
|
Stable
|
|
Moody’s
|
‘Aaa’
|
Stable
|
|
Fitch
|
‘AA+’
|
Positive
|
Below are some of the comments from the rating agencies’ reports:
S&P highlighted San Antonio’s “very strong management practices and policies and consistent track record of conservative budgeting and strategic planning.”
Moody’s noted the City’s “sophisticated management team that employs long-range financial and capital planning and frequent financial monitoring.”
Fitch Ratings noted the City’s “strongest assessment for financial resilience.”