Show summary Hide summary
Oklahoma City kept its place among the best‑rated large U.S. municipalities this spring, with both Moody’s and S&P reaffirming top-tier credit scores—an endorsement that matters now because it directly affects how cheaply the city can borrow for streets, public safety projects and a new downtown arena. The twin upgrades preserve an 18‑year streak of highest-level ratings and set the stage for a planned bond sale later this month.
Moody’s confirmed an Aaa rating with a stable outlook on April 6, and S&P Global Ratings followed with a matching AAA rating and stable outlook on April 7. Those are the strongest marks each agency assigns and keep Oklahoma City among a small group of large cities with dual triple‑A scores—13 cities nationwide with populations above 500,000, by the city’s count.
What the ratings mean for the city
Oklahoma City sustains top bond ranking in 18-year credit streak
Thunder to host winner-take-all Game 7 in Oklahoma City after Spurs win Game 6
Credit ratings help determine the interest rate the city pays when issuing general obligation debt. Lower rates reduce financing costs for long‑running capital programs that touch everyday life, from street repairs to public safety upgrades.
- Primary uses: Funds back the Better Streets, Safer City initiative and the upcoming 2025 general obligation bond package.
- Recent actions: Moody’s and S&P reaffirmed top ratings in early April; Moody’s separately rated arena debt in early May.
- Arena financing: Moody’s assigned an Aa1 rating (stable) on May 5 to bonds secured by a voter‑approved 1% arena sales tax.
- Planned sale: The Series 2026 arena bonds are slated for sale on May 20 through underwriters Goldman Sachs, Morgan Stanley and BOK Financial.
On May 5, Moody’s issued an Aa1 rating with a stable outlook for the city’s arena sales tax revenue bonds. Those securities will be repaid from the 1% sales tax voters approved to fund a new downtown arena, intended as the future home of the NBA champion Oklahoma City Thunder.
Assistant City Manager Brent Bryant welcomed the Aa1 score, saying the rating will support the city’s effort to finance the arena. City officials have tied the arena bonds and the sales tax revenue stream directly to debt service for the project, a structure Moody’s evaluated in its analysis.
Sale proceeds for the Series 2026 bonds will go toward construction and related costs; underwriters are preparing the offering for the May 20 marketing and sale date. City officials and investors will be watching actual sales tax collections in the months after the arena opens, since those receipts will cover bond payments.
Practical effects and what to watch
Maintaining triple‑A ratings translates into tangible savings on interest over the life of bond issues, which can lower the burden on taxpayers and free up resources for other priorities. The ratings also signal to investors that the city’s fiscal management and economic base are viewed as stable.
Key near‑term items to follow:
- Results of the Series 2026 bond sale on May 20 and the interest rates achieved.
- Short‑term sales tax receipts tied to the arena, which will be the primary revenue source for the arena bonds.
- City budget actions and any changes to the capital program that might affect debt levels before the next rating review.
For now, Oklahoma City’s credit profile remains strong, giving municipal officials more flexibility as they move forward with infrastructure projects and the high‑profile arena development.
