Overland Park, KS GO Rating Outlook Revised To Negative On Insufficient Debt Management

CENTENNIAL (S&P Global Ratings) Sept. 16, 2021--S&P Global Ratings revised its outlook to negative from stable on the City of Overland Park, Kan.'s general obligation (GO) debt and affirmed the 'AAA' long-term rating on the debt. At the same time, S&P Global Ratings assigned its 'AAA' long-term rating to the city's series 2021A ($29,250,000) internal improvement bonds. The outlook is negative. The outlook change reflects our view that the city's governance risk is elevated because it is not actively managing its distressed Overland Park Development Corp. (OPDC) revenue bonds outside of additional marketing efforts and voluntary disclosures," said S&P Global Ratings credit analyst Alex Louie. If the OPDC's revenue bonds coverage continues to decline and the city defaults on this

...September 16, 2021 CENTENNIAL (S&P Global Ratings) Sept. 16, 2021--S&P Global Ratings revised its outlook to negative from stable on the City of Overland Park, Kan.'s general obligation (GO) debt and affirmed the '###' long-term rating on the debt. At the same time, S&P Global Ratings assigned its '###' long-term rating to the city's series 2021A ($29,250,000) internal improvement bonds. The outlook is negative. The outlook change reflects our view that the city's governance risk is elevated because it is not actively managing its distressed Overland Park Development Corp. (OPDC) revenue bonds outside of additional marketing efforts and voluntary disclosures," said S&P Global Ratings credit analyst Alex Louie. If the OPDC's revenue bonds coverage continues to decline and the city defaults on this obligation, or the city loses control of a key economic asset, we could revise our view of the city's economic profile given the decline in transient guest tax revenues. We could lower the rating...

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