San Antonio, November 25, 2025
San Antonio has received a ‘AA-‘ rating on its upcoming Series 2026A Electric and Gas Revenue Refunding Bonds from Fitch Ratings, reflecting strong fiscal management and a stable outlook. The city plans to issue approximately $248 million in bonds to refund existing obligations, promoting economic growth and enhancing the financial profile of CPS Energy, which also maintains an ‘AA-‘ rating with strong operational metrics.
San Antonio, Texas
San Antonio Secures ‘AA-‘ Rating for New Revenue Bonds
Fitch Ratings has assigned a ‘AA-‘ rating to San Antonio’s upcoming Series 2026A Electric and Gas Revenue Refunding Bonds, along with a Stable Outlook. This funding will assist the city in issuing approximately $248 million in bonds, expected to price via a negotiated sale in early December 2025, contingent on market conditions. The proceeds are earmarked to refund existing senior lien obligations, delivering significant debt service savings and covering issuance costs.
This financial maneuver reflects a prudent approach to economic stewardship that could bolster San Antonio’s fiscal health. Coupled with the affirmation of CPS Energy’s outstanding $5.8 billion senior-lien obligations also rated at ‘AA-‘, this development signals a robust financial profile for the city’s utility, featuring a large and diverse customer base and favorable operational metrics within the Electric Reliability Council of Texas (ERCOT) framework.
Details of the Bond Issuance
The decision to move forward with these refunding bonds demonstrates San Antonio’s commitment to sustaining its economic growth. By capitalizing on favorable market conditions, the city aims to optimize its financial obligations while ensuring the reliable delivery of essential electric and gas services to its residents. The rigorous fiscal management exhibited here is an example of how municipal governance can enhance local economic conditions by managing debt effectively.
Focus on CPS Energy’s Financial Strength
CPS Energy’s strong performance has been underpinned by several strategic acquisitions, including the recent investment in natural gas generation assets. This has resulted in a manageable increase in leverage, thereby improving the utility’s long-term resource portfolio. Fitch anticipates that leverage will stabilize between 9.0x and 10.0x, supporting the current credit rating and reflecting a strong operational environment.
Implications for Future Rate Adjustments
To maintain its solid financial profile, Fitch expects CPS Energy to implement disciplined, periodic rate increases as necessary to support ongoing financing requirements and broader financial goals. This approach could ensure the continued reliability of services while promoting economic resilience amid changing market conditions.
Key Takeaways for San Antonio’s Economy
The issuance of these bonds, rated ‘AA-‘, stands as a testament to San Antonio’s sound fiscal management and the efficacy of local governance in fostering a favorable environment for economic development. Stakeholders can anticipate increased financial stability as the city navigates its plans for infrastructure and utility enhancements.
Conclusion: A Brighter Financial Future
As San Antonio embarks on this latest financial initiative, it exemplifies the potential of local entrepreneurial innovation and the benefits of strategic fiscal governance. Residents and investors alike can remain optimistic about sustainable economic growth as the city prioritizes responsible management of its utility services and optimizes its financial obligations. Supporting local businesses and staying engaged with community developments will be crucial for fostering a prosperous future for San Antonio.
FAQ
What rating did Fitch assign to San Antonio’s new Series 2026A Electric and Gas Revenue Refunding Bonds?
Fitch Ratings assigned a ‘AA-‘ rating with a Stable Outlook to San Antonio’s new Series 2026A Electric and Gas Revenue Refunding Bonds.
How much is San Antonio planning to issue in electric and gas systems revenue refunding bonds?
San Antonio plans to issue approximately $248 million in electric and gas systems revenue refunding bonds.
What will the proceeds from the bond issuance be used for?
The proceeds will be used to refund existing senior lien obligations for debt service savings and cover issuance costs.
What is the current rating of CPS Energy’s outstanding senior-lien obligations?
Fitch affirmed CPS Energy’s outstanding $5.8 billion senior-lien obligations at ‘AA-‘, maintaining a Stable Outlook.
What is Fitch’s expectation regarding CPS Energy’s leverage?
Fitch anticipates CPS Energy’s leverage will range between 9.0x and 10.0x in its rating case, supporting the current rating.
Key Features
| Feature | Details |
|---|---|
| Bond Rating | ‘AA-‘ with Stable Outlook |
| Bond Amount | Approximately $248 million |
| Use of Proceeds | Refund existing senior lien obligations and cover issuance costs |
| CPS Energy’s Outstanding Obligations | $5.8 billion senior-lien obligations affirmed at ‘AA-‘ |
| Leverage Expectations | Anticipated to range between 9.0x and 10.0x in Fitch’s rating case |
| Rating Outlook | Stable |
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Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
