The City of San Antonio’s ‘AAA’ general obligation bond rating has been affirmed by the three major bond rating agencies, Standard & Poor’s, Fitch, and Moody’s. The ‘AAA’ bond rating is the highest credit rating that an entity can receive. San Antonio is the only city with a population of more than one million to receive a ‘AAA’ general obligation rating from all three major rating agencies.
“The City's AAA bond rating is more proof that San Antonio is well managed and one of the best places in America to do business,” Mayor Julián Castro said.
Some of the rationale for the City’s ‘AAA’ bond rating cited in the bond rating reports included a strong and vibrant economy; financial performance and position; strong financial management policies; two-year budget strategy; comprehensive long-term financial; and capital program.
“Among the ten largest cities in the U.S., San Antonio is the only one with ‘AAA’ ratings from all three major ratings services,” said City Manager Sheryl Sculley. “This bond rating means lower costs of borrowing, decreased interest costs, and more funding for street, drainage and park repairs. This ‘AAA’ rating is the result of strong financial policies management of the City of San Antonio.”
On July 16, 2013, the City priced two bond transactions to fund projects adopted in the City’s Capital Budget. General obligation bonds in the principal amount of $114,435,000 and certificates of obligation in the principal amount of $15,145,000 were priced by a syndicate led by Wells Fargo Securities as Senior Book Running Manager, RBC Capital Markets as Co-Senior Manager, and Piper Jaffray & Co., Rice Financial Products Company, Ramirez & Co., Inc., and Southwestern Capital Markets, Inc. as Co-Managers.
The City achieved excellent results in the pricing of the two transactions. The combined true interest cost on the general obligation bonds and the certificates of obligation was 3.747 percent.