Settle Talk reported yesterday that Moody's had downgraded Shreveport’s general obligation bonds from Baa2 to Baa3. This downgraded rating is still considered to be “investment grade.” This downgrade may not increase the interest rate for future bond sales.
Moody's also downgraded Shreveport’s bond rating for Water & Sewer revenue bonds. The new rating is Ba1, down from Baa3. The new rating means that Water & Sewer bonds are now “non-investment grade.” This means that the sale of future bonds for Water & Sewer construction will carry a higher interest rate.
No doubt the unresolved EPA consent decree is a major factor in this downgrade. On KEEL radio this morning Mayor Arceneaux announced that he expected progress will be made in modification of this decree in early 2026. This event will not necessarily increase the Water and Sewer revenue bond ratings since there is concern by Moody’s that a rate increase is needed for the city’s financial stability.
Mayor Tom indicated this morning that the Standard and Poor’s bond rating should be released today. It is expected that this bond rating will remain constant.
John came to Shreveport in January of 1977 when he was transferred to Barksdale AFB.
He’s been active in Shreveport politics since deciding to make Shreveport his home.
John practiced law for 40 years and he now monitors local politics. He regularly attends Shreveport City Council and Caddo Parish Commission meetings.
John is published weekly in The Inquisitor, bi-monthly in The Forum News, and frequently in the Shreveport Times.
He enjoys addressing civic groups on local government issues and elections.