Ahead of Bond Sales and After Pension Overhaul, S&P Gives Dallas an Improved Credit Outlook

A second ratings agency has upgraded Dallas' debt outlook as the city asks voters for the right to borrow more than $1 billion.S&P Global Ratings changed the outlook on Dallas' outstanding bonds to stable from negative, crediting the state Legislature's overhaul of the Dallas Police and Fire Pension System. The credit rating did not budge from "AA-," however.S&P also lauded Dallas' "very strong management" and economic growth. But S&P added that the city's billions in unfunded pension liabilities -- for both the police and fire pension and the civilian retirement fund -- still stand in the way of a ratings upgrade.The agency's decision followed Fitch's similar move last month. The third major ratings agency, Moody's, has not yet reviewed Dallas' debt.   Continue reading...