...The 'AA' Issuer Default Rating (IDR) and GO rating reflect a 'aaa' financial resilience assessment. This is based on Dallas's midrange budgetary flexibility and solid reserves, which Fitch Ratings expects to equal at least 15% of spending. The ratings also reflect Dallas's mixed demographic and economic metrics, and high long-term liability burden. This burden includes the city's remaining GO bond authorization and expected special tax issuance for the convention center venue project in 2027. The 'AA' hotel occupancy tax (HOT) bond rating reflects a revenue risk assessment of 'bbb'. This reflects the narrow and discretionary revenue pledge, expected sensitivity to cyclical stress, and solid revenue growth prospects. The rating also reflects maximum annual debt service (MADS) coverage from Fitch-stressed revenue at the higher end of an 'aa' resilience assessment. The issuer has no further plans to leverage this lien. ...
