City of Corpus Christi Responds to Moody's Ratings Action

The City of Corpus Christi today acknowledged the action taken by Moody's Ratings (Moody's) to downgrade the City's General Obligation Limited Tax (GOLT) and sales tax revenue ratings to A1 from Aa2, and the Combined Utility Enterprise rating to A1 from Aa3.

Moody's cited the region's urgent need to secure additional water supply before projected demand exceeds availability, noting the heightened environmental, social, and governance risks associated with water stress.

The rating agency specifically highlighted the potential for curtailment of industrial operations, a key component of the regional economy, should water supply solutions not be successfully implemented.

The water shortage issue is the City’s top priority. It is being addressed with a multi-faceted approach to secure a long-term, diverse, and drought-proof water supply for all customers.

"While we acknowledge Moody's decision to downgrade our credit ratings, we want to assure our residents and investors that the City is fully committed to aggressively addressing the need for water supply diversification," City Manager Peter Zanoni said. “The report clearly underscores the urgency of our ongoing efforts, including the pursuit of seawater desalination, Evangeline Aquifer groundwater access in Nueces and San Patricio Counties, and water reuse projects.”

City leadership remains focused on receiving clean audit opinions on its financial reporting and ensuring that all major capital projects, particularly those related to water security, are delivered in a financially responsible and timely manner.

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