The City of San Antonio’s AAA general obligation bond rating has been affirmed by the three major bond rating agencies, meaning the city's borrowing costs will remain low, 1200 WOAI news reports.
Standard and Poor's, Fitch, and Moody all agree that San Antonio deserves the highest credit rating that a public entity can receive. The agencies cite San Antonio's growing population and tax base, and relatively low levels of debt.
San Antonio is the only city with a population of more than one million to receive an AAA general obligation bond rating from all three major rating agencies. The rating was affirmed despite the city maxing out its local sales tax to pay for the Pre-K for SA program.
"Among the ten largest cities in the USA, San Antonio is the only one with AAA ratings from all three major rating services," City Manager Sheryl Sculley said. "This bond rating means lower costs of borrowing, decreased interest costs, and more funding for street, drainage and park repairs."
The AAA bond rating is particularly important as many U.S. cities, from Detroit to Stockton California, are dealing with defaults and some are flirting with bankruptcy.
Sculley says the city recently sold about $140 million worth of general obligation bonds and certificates of obligation, and got a combined interest rate of 3.74%
Try getting that on your next car loan.