Standard and Poor’s just issued its new rating for upcoming Shreveport bond issues.
The Water and Sewer Revenue Refunding Bonds are rated A-. This rating is for senior-lien revenue bonds. The refinancing of these bonds will save the city approximately $8 million.
These bonds have credit enhancements that the other water and sewer bonds lack. These enhancements improve the probability of repayment. Enhancements include collateral, guarantee, and/or insurance. The senior lien status of these bonds is an important factor in the bond refunding rating.
Standard and Poor’s maintained the rating of BBB+ for the junior-lien water and sewer revenue bonds. Additionally, the agency revised its current financial outlook for the city from “stable” to “negative.” This revision reflects the uncertainty over the outcome of the consent decree modifications.
Mayor Arceneaux has continued his positive outlook on the modification of the consent decree in media interviews and press releases. Arceneaux has continued to emphasize the importance of NOT dipping into city reserves for ongoing expenses and maintaining the reserve amount of $8 million.
Both Moody’s and Standards and Poor’s have major concerns on Shreveport’s future financial status. This reality should be accepted by the City Council in any further modifications of the 2026 city budget other than the announced proposals by Arceneaux for pay raises, uniform allowances and SPD cars and garbage trucks.
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.