San Antonio's General Obligation 'AAA' Bond Rating Re-Affirmed
SAN ANTONIO, July 25, 2014 /PRNewswire-USNewswire/ -- The City of San Antonio's 'AAA' general obligation bond rating has been re-affirmed by the three major bond rating agencies - Standard & Poor's, Fitch and Moody's - for the fifth time since 2010. The 'AAA' bond rating is the highest credit rating an organization can receive. San Antonio is the only major city with a population of more than one million to have a 'AAA' bond rating from any one of the major rating agencies and with these most recent rating reviews, San Antonio has maintained its 'AAA' bond rating with all three major rating agencies.
In May, a City Council Budget Goal Setting Session was held to obtain policy direction for City Council Members for the development of the FY 2015 budget. During the goal setting session, City Council Members provided support for recommendations to strengthen and enhance the City's Financial policies. Some of the key enhancements included increasing the General Fund Financial Reserves and ending Fund Balance, establishing financial targets and managing the growth in the Public Safety budgets so that other core services such as Street Maintenance, Libraries and Parks are not crowded out.
"The City's strong bond rating is a great benefit for our community and a reflection of the excellent financial stewardship of our financial resources," said Mayor Ivy R. Taylor. "Strong financial management coupled with our diverse local economy, rich history and culture make San Antonio a truly unique Big City in America."
San Antonio's 'AAA' bond rating is attributable to its strong fiscal performance and financial management policies, according to the bond rating reports. The City also maintains a two-year budget strategy and comprehensive long-term capital program.
"Among the ten largest cities in the U.S., San Antonio is the only municipality with 'AAA' ratings from all three major ratings services," said City Manager Sheryl Sculley. "Superior bond ratings result in lower borrowing costs and decreased interest expense. These ratings also reflect our commitment to proactively manage the City's finances for the long-term with updates to our financial policies and addressing legacy benefits."
City on the Rise: San Antonio
San Antonio is a city on the rise for the new face of America—a diverse, progressive and globally competitive city with a solid vision for national and international economic development. The City of San Antonio maintains a strong financial position with a "AAA" general obligation bond rating from all three major rating agencies. In 2014, Forbes labeled San Antonio the "Best City in the Southwest" for adults ages 18-34 for its dynamic economy, employment opportunities and affordable living. As the seventh-largest city in the United States, San Antonio is experiencing solid economic growth in 21st century industries such as bioscience, aerospace, cybersecurity and healthcare, which contribute billions to the local economy. San Antonio has also positioned itself at the forefront of the New Energy Economy in the United States, committed to investing and creating employment opportunities in green industries. San Antonio continues to experience the addition of missions at its several military commands, further fostering a significant relationship spanning more than 200 years. Nearly 30 million visitors come to San Antonio every year, generating more than $12 billion annually and making the travel industry a vital asset to the city's economic health. For more information, visit www.sanantonio.gov.
SOURCE City of San Antonio