DALLAS — Standard & Poor's upgraded Bexar County, Texas, to AAA.
S&P raised the previous AA-plus rating to AAA May 8 in advance of a $50 million issue of bonds for highway projects. Moody's Investors Service and Fitch Ratings already rated the credit triple-A.
"The raised rating is due primarily to our view of the county's consistent trend of improved budgetary performance and of the continued growth in and diversification of the county's economic base," said Standard & Poor's credit analyst Lauren Spalten.
County officials said the higher rating will result in lower borrowing costs.
"This is proof that the financial policies this Commissioners Court put in place have paid off for the taxpayers and for the county," county commissioner Paul Elizondo said. "And we accomplished this while lowering the county's property tax rate over the past 20 years, including this fiscal year."
With a population of 1.9 million, Bexar County is the hub of a growing metro area that has benefitted in recent years from the production boom in the Eagle Ford Shale south of San Antonio.
"With oil prices dropping, activities have slowed," Spalten said. "However, county officials report that they have no concerns at this point with the large related taxpayers and employers."
Major military installations in the county continue to provide a stabilizing presence for the economy, Spalten wrote. Tourism also thrives.
"The growing presence of medical and biomedical companies has helped to diversify the area economy, which was historically anchored primarily by the military and tourism sectors," Spalten said.
County officials also report that the finance industry has become an important component of the county's economy, with an annual impact of roughly $21 billion. Eight financial institutions are headquartered in San Antonio, as are four regional headquarters.
In addition, Toyota Motor Corp. operates a truck manufacturing facility in San Antonio with about 2,900 employees.
