CORPUS CHRISTI, TX — As Corpus Christi city leaders continue to look for short and long-term solutions to the ongoing water crisis, the city's credit rating has taken a hit.
A memo from City Manager Peter Zanoni sent to City Council reads:
"S&P Ratings has just announced that they lowered the City’s Utility System credit rating from an 'AA-' to an 'A.'"
The "A" rating is defined as a "medium grade credit rating."
The S&P cited the region's drought and the potential for Level One Water Emergency, which the city projects could arrive as soon as September.
The S&P also put a "negative credit watch” on the City’s Utility System. Over the next 3-6 months, it will monitor the city's financial situation, the progress of various water projects, and the possibility of Level One Water Emergency.
S&P Ratings also lowered the credit rating for debt issuances for the Nueces River Authority and Lavaca Navidad River Authority (LNRA) from “AA-” to “A.” It cited projects related to the production and transfer of water from Lake Texana to the Mary Rhodes Pipeline.
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