City of Eagle Pass Debt Downgraded from AA- to A+ by Standard & Poor Global Ratings
By: Ricardo E. Calderon, Eagle Pass Business Journal, Inc., Copyright 2025
The City of Eagle Pass, Texas received notice that its outstanding general obligation (GO) and certificates of obligation (CO) debt was downgraded and “lowered from AA- to A+ “ by Standard & Poor Global Ratings earlier this month (September 2025).
Eagle Pass Mayor Aaron Valdez confirmed to the Eagle Pass Business Journal on Wednesday, September 24, 2025, at a city event titled “BBQ with the Mayor and City Manager” held at a local BBQ restaurant.
When questioned by this news reporter if the City of Eagle Pass planned to obtain certificates of obligations (bonds) for the costs to design and construct the expansion project of Camino Real International Bridge from six to 12 lanes, Mayor Valdez answered in the affirmative. When asked if the he knew the current interest rate on certificates of obligations (bonds) in Wall Street (New York), Mayor Valdez noted that he did not know but the City would contact its financial advisor. When asked if he knew what the City’s credit rating was on Wall Street, Mayor Valdez admitted that the City’s credit rating had just been reduced this month from AA- to A+ by Standard & Poor’s Global Ratings.
According to Standard & Poor Global Ratings, the downgrading of the City of Eagle Pass’s general obligation (GO) and certificates of obligation debt was due “to the City’s limited local economy and recent history of internal controls, with multiple material weakness findings in both the fiscal year 2022 (three) findings and 2023 audits (11 findings.).”
Mayor Valdez stated Standard & Poor Global Ratings could have downgraded the City’s GO and CO debt lower or to no rate at all, so the one step downgrade from AA- to A+ was as not as bad as it could have been. Valdez added that the downgrade was due to the past administration, but that the 2023 audit findings had been remedied by the City as noted in the 2024 Audit made by the auditing firm of Leal & Carter of San Antonio, Texas and approved by the City Council at its September 16th special meeting.
When asked if this downgrade of the City’s debt would cause the City of Eagle Pass to have to pay a higher interest rate on its general obligation and certificates of obligation should the City decide to borrow money from Wall Street for the design and construction of the Camino Real International Bridge expansion project, Mayor Valdez acknowledged that the City might have to pay a higher interest rate than before the downgrade of the City’s credit rating. The same impact would be felt if the City issued any general obligation or certificates of obligation for any other City projects such as the realignment of the transportation roadways necessary for ingress and egress to the Camino Real International Bridge expansion project.
City officials have previously stated the estimated cost to design and construct the expansion project of the Camino Real International Bridge has increased from $20 million to $45-50 million plus another estimated $20-23 million for the design and construction of the realignment of transportation project. Thus, the estimated potential cost of both the realignment of the transportation infrastructure and the expansion project of the Camino Real International Bridge is between $65-73 million, assuming there is no major catastrophe or force majeure events.
Mayor Valdez added that he and City officials met with U. S. House of Representative Tony Gonzales (R-Tx District 74, San Antonio) last week to discuss the availability of federal funding for the City’s expansion bridge project as well as other projects. Valdez noted Congressman Gonzales, who sits on the U. S. House of Representatives Oversight Committee, noted he would do everything possible to assist the City of Eagle Pass obtain federal funds for the bridge expansion project and others. Previously several years ago, Congressman Gonzales had obtained a federal grant of $5 million for part of the City’s costs to design and construct the Camino Real Bridge expansion project.
One possible scenario that might delay the City of Eagle Pass’s Camino Real Bridge expansion project or increase its costs to construct it is if the United States federal government shut downs on Tuesday evening, September 30, 2025 due to Congress’s failure to approve an extension of the federal budget funding resolution.
Mayor Valdez vowed the City of Eagle Pass will review the City’s downgrade of its credit rating with its financial advisors and pursue all alternatives available to the city.
