DALLAS (Standard&Poor's) May 19, 2008--Standard&Poor's Ratings Services revised its underlying rating (SPUR) outlook on Celina, Texas' existing general obligation debt to positive from stable. At the same time, Standard&Poor's affirmed its 'BBB' SPUR on the bonds. The outlook revision reflects our expectation that the city will adjust its declining financial position and that Celina's property tax base will continue to grow due to its access to the Dallas metropolitan statistical area (MSA). The SPUR reflects the city's high overall debt burden, which is attributed to growth-driven pressures; limited local economy; and declining fund balance position with low reserve levels. Offsetting factors include the city's direct access to Plano, Texas' and the northern Dallas MSA's
