Cedar Park, TX GO Debt Rating Raised To 'AA+' On Economic Growth, Diversification

DALLAS (S&P Global Ratings) July 29, 2016--S&P Global Ratings raised its long-term rating and underlying rating on Cedar Park, Texas' general obligation (GO) debt to 'AA+' from 'AA'. The outlook on both ratings is stable. "The rating action reflects the city's continued economic growth and diversification, resulting in per capita market value and per capital income levels more in line with higher-rated peers," said S&P Global Ratings credit analyst Stephen Doyle. "The city is expected to continue experiencing a similar level of growth." An ad valorem property tax, levied within the limits prescribed by law, on all taxable property in the city secures the bonds. The city's current property tax rate of 47.95 cents per $100 of assessed value (AV)

...DALLAS (S&P Global Ratings) July 29, 2016--S&P Global Ratings raised its long-term rating and underlying rating on Cedar Park, Texas' general obligation (GO) debt to '##+' from '##'. The outlook on both ratings is stable. "The rating action reflects the city's continued economic growth and diversification, resulting in per capita market value and per capital income levels more in line with higher-rated peers," said S&P Global Ratings credit analyst Stephen Doyle. "The city is expected to continue experiencing a similar level of growth." An ad valorem property tax, levied within the limits prescribed by law, on all taxable property in the city secures the bonds. The city's current property tax rate of 47.95 cents per $100 of assessed value (AV) is well below the maximum allowable tax rate of $2.50 per $100 of AV. Bond proceeds will be used to refund certain series of outstanding debt and to fund various capital projects. RELATED RESEARCH + S&P Public Finance Local GO Criteria: How We Adjust...

Ratings Action