City Credit Rating Upgraded
Despite National Economic Downturn from COVID-19 Pandemic
CORPUS CHRISTI, TX – Moody’s Investors Service upgraded the City’s utility revenue bond rating by one notch from A1 to Aa3 with a stable outlook placing the City’s credit worthiness in the high-grade category. The rating reflects outstanding management practices including multi-year planning and appropriate rate-setting to support the water/sewer system’s growing customer base. Mayor Joe McComb is pleased that the rating agencies recognize that the City is strategically planning for alternate water sources. He was quoted as saying, “We have made tremendous progress in planning for a drought-proof water supply, and our plans for the City’s seawater desalination plants are paying off.” City Manager Peter Zanoni credits the upgrade to the fact that the City has a strong professional team, maintains best practices in its service delivery, and is focused on a strong maintenance program to achieve a premiere water and sewer system.
The upgrade will help to keep interest costs low for the upcoming approved bond sale of $110 million for water and sewer system improvements and capital maintenance that was approved by the City Council in May 2020. In addition, the City will be refunding existing utility debt for savings of approximately $23 million over the remaining life of the bonds.
Standard & Poor’s Global Ratings (S&P) upheld the City’s utility revenue bond credit rating of AA- with a stable outlook which is also in the high-grade category.
The City also will be issuing $80.5 million of general improvement bonds as well as refunding existing general improvement debt for savings of approximately $7 million over the remaining life of the bonds.
Bond rating companies Moody’s, S&P and Fitch reaffirmed the City’s general obligation ratings of Aa2, AA and AA, respectively, all with a stable outlook.
Media representatives requesting more information may contact Public Information Officer Dale Stephán at 361-826-3234 or by email at email@example.com.