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Thursday, December 20, 2018

As Predicted, Major Ratings Agency Downgrades San Antonio's AAA Bond Rating

Posted By on Thu, Dec 20, 2018 at 9:53 AM

The mayors tried to warn you, San Antonio. - SANFORD NOWLIN
  • Sanford Nowlin
  • The mayors tried to warn you, San Antonio.
Well, we were warned.

Fitch, one of three major ratings agencies, has downgraded the city of San Antonio’s AAA bond rating to AA+, likely increasing its cost of borrowing money.

The downgrade occurred because of the November charter amendment vote, which granted San Antonio's fire union the unilateral right to demand binding arbitration in contract disputes, according to Fitch.

Although Moody's and Standard & Poor's — the other two agencies — haven't tweaked San Antonio's rating since the election, the Fitch downgrade should come as no surprise. Shortly after the vote, the company warned it was reviewing the city's status.

Voters also got that warning prior to the election. Current Mayor Ron Nirenberg and every former S.A. mayor the Go Vote No campaign could round up appeared in a television spot highlighting the potential for a downgrade.

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