Research Update: Plano, TX Series 2025 Drainage System Revenue Bonds Rated 'AAA'; Outlook Is Stable

S&P Global Ratings assigned its 'AAA' long-term rating to Plano , Texas' $4.88 million series 2025 municipal drainage utility system revenue bonds. At the same time, S&P Global Ratings affirmed its 'AAA' rating on the city?s municipal drainage utility system revenue bonds outstanding. The outlook is stable. A first-lien pledge on gross revenue of the municipal drainage utility system secures the revenue bonds. Bond provisions are considered credit neutral. The series 2025 bonds will fund erosion control capital projects. Inclusive of the current issuance, the system will have $68.85 million in debt outstanding as of fiscal year-end 2024. The rating is supported by the drainage system's extremely affordable rates, manageable capital program, and stable revenues. Although we expect fiscal 2025

...The ratings appearing below the new issues represent an aggregation of debt issues (ASID) associated with related maturities. The maturities similarly reflect our opinion about the creditworthiness of the U.S. Public Finance obligor's legal pledge for payment of the financial obligation. Nevertheless, these maturities may have different credit ratings than the rating presented next to the ASID depending on whether or not additional legal pledge(s) support the specific maturity's payment obligation, such as credit enhancement, as a result of defeasance, or other factors....

Research Update