The three major bond agencies, Fitch, Moody's and Standard & Poors, have affirmed the city's top AAA bond rating, meaning the money approved by voters in this year's bond package will buy more park equipment, street improvements and public safety, and less bank interest, News Radio 1200 WOAI reports.
A AAA bond rating means lenders will require lower interest payments, because the city is considered a good credit risk.
“The ‘AAA’ bond rating is one way San Antonio residents can clearly see local government working for them,” Mayor Ron Nirenberg said. “For the past eight years, our City Manager and her financial team have worked with City Council to attain this rating, which provides millions of dollars in savings. It’s no overstatement to say that the City of San Antonio is a shining example when it comes to managing taxpayer dollars.”
It is the eighth straight year that San Antonio has achieved the top bond rating, which is nearly unheard of among major cities. In fact, San Antonio is the only city of more than a million people to have a AAA bond rating from any of the three agencies, let alone all three.
"Earlier this year, our residents showed their confidence in City government by voting to approve the largest municipal bond program in San Antonio’s history,” City Manager Sheryl Sculley said. “Receiving the ‘AAA’ general obligation bond rating year over year allows us to continue delivering much needed capital projects without increasing the property tax rate.”
Standard & Poor cited San Antonio's 'very strong budgetary flexibility and liquidity, which is supported by very strong management."
Moody's cited the city's 'strong and vibrant economy, diverse sectors and stabilized financial operations. S&P said it sees no reason on the horizon to change the rating.
The rating is significant as the newly elected San Antonio City Council is preparing to consider a budget for the coming fiscal year.