Moody’s Investors Service last week (March 16, 2016) downgraded the city of Houston’s bond rating, citing low oil prices, falling sales tax revenues, unfunded pension obligations and property tax caps among the reasons.
We discuss how the city’s rating drop from Aa2 to Aa3 might affect some $3 billion in previously issued bonds and why the city might need more money to repay its debt.
We’re joined by two guests: University of Houston Economics Professor Steven Craig and Marc Watts, who chairs the Greater Houston Partnership’s Municipal Finance Task Force.