City of San Antonio Aaa Bond Rating Reaffirmed by Moody’s

Published on January 23, 2023

San Antonio Continues to be One of the Best Financially Managed Cities in the U.S.

SAN ANTONIO (January 23, 2022) –On Friday, January 20^th, Moody’s Investors Services (Moody’s) reaffirmed the City of San Antonio’s ‘Aaa’ credit rating and revised the City’s credit outlook from under review to stable. The reaffirmed rating was based on Moody’s new U.S. Cities and Counties Methodology published in November 2022, which placed 93 cities and counties, including San Antonio, on review for potential downgrades.

“San Antonio’s reaffirmed rating from Moody’s reflects the strong financial stewardship implemented by the City Council and the leadership from City Manager Erik Walsh and his team,” said Mayor Ron Nirenberg. “San Antonio will continue to be one of the best financially managed cities in the U.S.”

Favorable credit ratings enable the City to borrow at the lowest-possible interest rates, which save millions of dollars for residents each year. The savings in interest costs allow the City to invest more in streets, sidewalks, drainage improvements and other major bond projects.

“I’m tremendously proud of the City of San Antonio team’s ability to maintain this strong financial rating by Moody’s. The savings in interest costs means we can spend more towards meeting our commitment to much needed infrastructure improvements and outstanding service delivery,” said City Manager Erik Walsh. “Our team remains dedicated to prioritizing good, sound financial management policies and practices for the community we serve.”

Moody’s rating reaffirmation was based on their newly released rating methodology which considers San Antonio’s economy, financial performance, institutional framework, and leverage. The City’s ‘Aaa’ bond rating from Moody’s was affirmed in July 2022 and August 2022. This is the third time in the last six months that Moody’s has reviewed the City’s bond rating and reaffirmed its strong financial position.

Bond ratings for corporations or government agencies are like a credit score. The three primary rating agencies are Moody’s, Standard & Poor’s, and Fitch. These agencies provide independent evaluations of a bond issuer’s financial strength and ability to repay a bond’s principal and interest. The City’s general obligation credit ratings, which help determine the amount of interest paid for property tax supported debt issued to build capital projects in San Antonio, are as follows:

In its’ press release on the rating action, Moody’s highlighted the City’s strong financial practices by stating: “The rating also incorporates the City’s long history of strong operating performance which has driven stable and favorable results guided by a sophisticated management team that employs long range financial and capital planning and frequent financial monitoring.”