City bond rating not what it appears: Letters to the Editor

El Paso Times
·2 min read
El Paso City Council have lunch at the State of the City Address featuring Mayor Oscar Leeser hosted by El Paso Chamber at the Convention Center in Downtown El Paso on Wednesday, April 19, 2023.
El Paso City Council have lunch at the State of the City Address featuring Mayor Oscar Leeser hosted by El Paso Chamber at the Convention Center in Downtown El Paso on Wednesday, April 19, 2023.

City bond rating not what it appears

Terrell Blodget wrote to this newspaper claiming the recent bond rating "increase" to AA+ by the Kroll Bond Rating Agency is evidence of "the city's careful stewardship of taxpayer monies.”

First, KBRA is not one of the Big Three bond rating firms that set the industry standard. In fact, hardly anyone has heard of them. The WSJ reports that in 2020 they were fined $2 million by the SEC "for violating rules to make credit ratings accurate."

Second, KBRA has never rated our city's debt before so there is no "increase" from a previous rating. Each rating agency has its own metrics so it is hard to quantify what a AA+ from KBRA even means.

But what about the Big Three? It so happens that Fitch just reaffirmed its AA rating on our city's GO debt for the first time since 2014, but assigned a lower rating (AA-) to the $62 million in outstanding debt on our ballpark. Meanwhile, Standard & Poor's has maintained a AA rating since 2013. Moody's Aa3 rating has been in place since 2009, but they did warn us in December 2019 that in the event of a serious recession, El Paso will be one of four cities in which "adjusted net pension liabilities will rise by more than 100% of revenue."

Max Grossman

West El Paso

Legalize sports betting in Texas

It's time to legalize sports betting in Texas! Gambling is already legal in the state with the various lotteries and the multitude of scratch off tickets in every store. Neither gives the vast majority of players much chance of winning, and if someone does win, the payouts are far below what the odds are. We here in Texas are are big sports fans, football fans especially, why can't we play the game of our choice?

What Cowboys fan doesn't want to put a $10 (bet) on the team when they would like too? Or, place a small bet on a longshot in the Kentucky Derby? The lottery has a monopoly on gambling in the state. Now is the time for Lt. Gov. Dan Patrick to let the bills in the Legislature proceed to a vote and then let the voters decide next November. Hey, maybe we'll be placing a bet on the Cowboys in the next Super Bowl!

Christopher Falk

Central El Paso

Flexible thinking about aging benefits all

May is Older Americans Month. The Administration for Community Living has chosen Aging Unbound for the 2023 theme. This theme offers opportunity to dispel stereotypes and discuss diverse aging experiences. Flexible thinking about aging benefits us all when older adults remain engaged, independent, and included.

Davie Johnson

West El Paso

This article originally appeared on El Paso Times: City bond rating not what it appears: Letters to the Editor