The Culture of Business
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. 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.
“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.