City of Corpus Christi Addresses Updated Outlook from Fitch Ratings Regarding Water Supply Concerns

CORPUS CHRISTI, TX – The City of Corpus Christi has received notification from Fitch Ratings regarding a revision to the City’s financial outlook. While Fitch has affirmed the City’s ‘AA’ credit rating, indicating a very strong capacity to meet financial commitments, it has revised the Rating Outlook from “Stable” to “Negative.”

This revision applies to the City’s Issuer Default Rating (IDR) and its outstanding Fitch-rated debt obligations.

The shift to a Negative Outlook reflects Fitch’s concerns about elevated water-supply risks. The agency noted that uncertainty about the timing and effectiveness of the City’s water mitigation efforts could affect the local economy and overall credit quality.

Fitch indicated that a return to a “Stable” outlook will depend on the City’s ability to secure additional long-term water supply solutions within the next 12 to 24 months. The successful implementation of current projects and ensuring reliable, long-term water access are key milestones required to restore the Stable designation.

City leadership emphasizes that resolving the water shortage is the City’s top priority.

“We are working on numerous water supply projects that address and resolve our water issues,” City Manager Peter Zanoni said. “We want to make sure everyone has enough water even during a drought, which is essential for our city’s future and financial health.”

The City continues to move forward with several strategic water projects to diversify sources and enhance the region's water infrastructure resiliency.

For more information on current water projects and city initiatives, please visit Securing Water, Together. | Corpus Christi Water.

For more information, media representatives can contact Robert Gonzales, Public Information Manager, at 361-826-3233 or robertg8@corpuschristitx.gov.