Houston's Bonds Pay Firefighters.

Houston is set to issue a $720.4 million bond to settle a long-standing dispute with its firefighters. The majority of the funds will go towards a lump sum payment to cover overtime pay for current and retired firefighters, as well as a five-year collective bargaining agreement that increases firefighter pay by up to 34%. However, the bond issue has contributed to a negative outlook for Houston's rating, as it adds to the city's debt load and presents challenges in balancing the budget. S&P Global Ratings revised Houston's AA rating outlook to negative, citing increased debt service and limited capacity to raise revenue. Moody's Ratings, on the other hand, affirmed Houston's Aa3 rating and stable outlook, noting the city's solid financial position and expectation that it will address its budgetary gap. The bond sale is scheduled to take place this week. [Extracted from the article]