DALLAS (AP) – Another credit rating agency has downgraded the Dallas debt rating amid concerns for the ailing Dallas Police and Fire Pension fund.
The city on Wednesday announced S&P Global downgraded the city’s general obligation bonds to AA- and the Dallas Convention Hotel Development Corporations bonds to A-.
Other credit rating agencies, including Fitch Ratings and Moody’s Investors Service, have downgraded various city debt ratings over the last two years citing pension woes.
Dallas officials say the move was not unexpected. The pension is projected to hit insolvency in a decade. Both the city and pension system are working on pension fix proposals to submit to the Legislature.
The downgrade comes as city officials postponed an $800 million bond package election for street repairs and other city needs from May to November.