SAN ANTONIO, Aug. 2, 2012 /PRNewswire-USNewswire/ --The City of San Antonio's 'AAA' general obligation bond rating has been affirmed again by the three major bond rating agencies, Standard & Poor's, Fitch, and Moody's. Rating services provide these evaluations of a bond issuer's financial strength, or its ability to pay a bond's principal and interest in a timely manner and 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 1 million to receive a 'AAA' general obligation rating from all three major rating agencies.
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"This bond rating illustrates the City's strong financial management policies and practices and is a clear message that San Antonio is building its infrastructure at the lowest cost to taxpayers," said City Manager Sheryl Sculley. "The City achieved a 'AAA' rating for the first time in the City's history in 2008. It's one thing to achieve it, and another to maintain it. We're very proud of the fact that the three major rating services affirmed the City's'AAA' General Obligation rating."
Some of the rationale for the City's 'AAA' bond rating cited in the bond rating reports included a diverse regional economy; strong financial management policies and practices; solid financial reserves; and comprehensive long-range financial planning.
On July 31, 2012, the City priced two bond transactions to fund projects adopted in the City's Capital Budget. General obligation bonds in the principal amount of $148.6 million and certificates of obligation in the principal amount of $19.34 million were priced by a syndicate led by Piper Jaffray & Co. as Senior Book Running Manager, Wells Fargo Securities as Co-Senior Manager, and M.E. Allison & Co., Inc., RBC Capital Markets, LLC, Samuel A. Ramirez & Co., Inc., and Southwestern Capital Markets 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 2.54 percent.
On Aug. 7, 2012, the City will price Tax Notes in the proposed principal amount of $18.1 million. The Tax Notes will be priced by a syndicate led by M.E. Allison & Co., Inc. as Senior Book Running Manager and First Southwest Company as Co-Manager.
A Model City for all America: San Antonio
San Antonio is a model city for the new face of America-a diverse, progressive and globally competitive city with a solid vision for national and international economic development. In 2012, San Antonio was named an All-America City by the National Civic League.The City of San Antonio maintains a strong financial position with a "AAA" general obligation bond rating from all three major rating agencies. The Milken Institute has ranked San Antonio No. 1 on its Best-Performing Cities list. As the seventh-largest city in the United States, San Antonio is experiencing solid economic growth in 21st century industries such as bioscience and healthcare. Biotech companies and healthcare systems in San Antonio contribute billions to the local economy. The Aerospace industry remains a dominant economic strength in San Antonio with the presence of several aviation and aerospace corporations, including the military.The military has had a significant relationship with San Antonio for more than 200 years and is home to several military commands. The city is also a cybersecurity hub; nationally recognized as a leader in the field of information security. San Antonio is positioning itself to be at the forefront of the New Energy Economy in the United States, committed to investing and creating employment opportunities in green industries. The travel industry also remains a consistent growing economy for the city, as millions of people visit San Antonio on a yearly basis. For more information, visit www.sanantonio.gov.
SOURCECity of San Antonio