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Posted on: February 13, 2018

S&P Press Release

S&P Press release CODR

City of Del Rio Standard & Poor’s Creditworthiness and Credit Quality Increase


Rating organizations such as the Fitch Group and Standard & Poor’s help investors make sound
financial decisions and help policyholders evaluate financial stability of an organization.


S&P Global Ratings raised its long-term rating on Del Rio, Texas general obligation (GO) bonds
and combination tax and surplus revenue certificates of obligation from ‘A+’ to ‘AA-‘. At the
same time, S&P Global Ratings assigned its ‘AA-‘ long-term rating to the city’s series 2018
combination tax and revenue certificates of obligation. The outlook is stable.


The rating reflects S&P’s opinion of Del Rio:
• Weak economy, with market value per capita of $38,214 and projected per capita
effective buying income at 69.0%, but that is benefitting from a local stabilizing
institutional influence;
• Strong management, with “good” financial policies and practices under our Financial
Management Assessment (FMA) methodology;
• Strong budgetary performance, with operating surpluses in the general fund and at the
total governmental fund level in fiscal 2016;
• Very strong budgetary flexibility, with an available fund balance in fiscal 2016 of 55% of
operating expenditures;
• Very strong liquidity, with total government available cash at 121.0% of total
governmental fund expenditures and 8.0x governmental debt service, and access to
external liquidity we consider strong;
• Weak debt and contingent liability profile, with debt service carrying charges at 15.1% of
expenditures and net direct debt that is 167.9% of total governmental fund revenue, but
rapid amortization, with 69.9% of debt scheduled to be retired in 10 years; and
• Strong institutional framework score.


The Fitch Group, also upgraded the City of Del Rio as a ‘AA-‘ high grade investment. Since S&P
and Fitch have both upgraded the City of Del Rio to ‘AA-‘, the city is now at a higher tier which is
referred to as the “High grade” tier.


The City of Del Rio is proud to say that this is the highest investment grade that the city has ever
obtained.

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