SAN ANTONIO, May 19, 2016 /PRNewswire-USNewswire/ -- The City of San Antonio's 'AAA' general obligation bond rating has been re-affirmed by Fitch Ratings for the seventh consecutive year. Fitch recently revised its U.S. tax-supported rating criteria. San Antonio was one of several high profile cities to be reviewed initially. Fitch said the rating reflects San Antonio's "strong revenue flexibility and growth prospects, minimal revenue volatility, and superior financial resilience," which offset "rapidly rising public safety spending."
"The reaffirmation of the City's excellent credit rating is a tremendous benefit for our San Antonio residents, especially as we complete significant 2012 bond projects and begin to prepare for the 2017 bond program," said Mayor Ivy Taylor. "Our City Manager, assisted by the City's financial team, has done an outstanding fiscal job of managing taxpayer resources."
The 'AAA' bond rating is the highest credit rating an organization can receive and it allows the City to pay the lowest possible interest rates in the market, which saves taxpayers millions of dollars every year. 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.
"This is great financial news for all residents of San Antonio and our City organization," said City Manager Sheryl Sculley. "It's imperative to maintain an exceptional credit rating because it allows us to provide improved streets, libraries, flood control and parks at a lower total cost to our local community."
Fitch Ratings took into consideration the City's ongoing contract negotiations with the San Antonio police and fire labor unions, noting "it is the City's goal to cap public safety spending at (66% of General Fund spending) in order to avoid the crowd out of other services." Fitch added that "the city has demonstrated a solid ability to cut spending during times of economic and revenue decline."
One San Antonio
Diverse, internationally connected and globally competitive, San Antonio has a vibrant culture and economy and is consistently ranked among the fastest-growing cities in the United States. America's seventh-largest city offers opportunities in industries ranging from bioscience, financial services, aerospace, cybersecurity, energy and transportation manufacturing to healthcare. We are "Military City USA," home to crucial military commands supported by a patriotic citizenry. We welcome 31 million visitors annually who inject $13.4 billion annually into our economy, and UNESCO recently designated the city's Spanish colonial missions as a World Heritage Site. Celebrating its 300th anniversary in 2018, San Antonio is a city with a storied past and an even brighter future. For more information, visit www.sanantonio.gov.
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SOURCE City of San Antonio