Parker, TX GO Rating Lowered To 'AA+' On Adequate Financial Management Policies And Practices

CENTENNIAL (S&P Global Ratings) July 9, 2018--S&P Global Ratings lowered its rating to 'AA+' from 'AAA' on the city of Parker, Texas' general obligation (GO) debt. At the same time, S&P Global Ratings assigned its 'AA+' rating to the city's series 2018 certificates of obligation. The outlook is stable. "The lower rating reflects both a higher-debt burden and a change in our view of the city's institutionalized policies and practices as inventoried in our financial management assessment (FMA), which we revised to adequate from strong, primarily due to a lack of formalized long-term capital and financial planning" said S&P Global Ratings credit analyst Kimberly Barrett. The certificates are payable from an ad valorem tax levied on all taxable property in

...CENTENNIAL (S&P Global Ratings) July 9, 2018--S&P Global Ratings lowered its rating to '##+' from '###' on the city of Parker, Texas' general obligation (GO) debt. At the same time, S&P Global Ratings assigned its '##+' rating to the city's series 2018 certificates of obligation. The outlook is stable. "The lower rating reflects both a higher-debt burden and a change in our view of the city's institutionalized policies and practices as inventoried in our financial management assessment (FMA), which we revised to adequate from strong, primarily due to a lack of formalized long-term capital and financial planning" said S&P Global Ratings credit analyst Kimberly Barrett. The certificates are payable from an ad valorem tax levied on all taxable property in the city, within the limits prescribed by law. The maximum allowable ad valorem tax rate for Texas cities is $2.50 per $100 of assessed value (AV) for all purposes, with the portion dedicated to debt service limited to $1.50. Parker's levy...

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