Research Update: Plano, TX Series 2025 Waterworks And Sewer System Revenue Bonds Assigned 'AAA' Rating

S&P Global Ratings assigned its 'AAA' rating to Plano , Texas' $45.1 million series 2025 waterworks and sewer system revenue bonds. At the same time, S&P Global Ratings affirmed its 'AAA' rating on the city's revenue bonds outstanding. The outlook is stable. Bonds are secured from net revenues of the water and sewer systems. Bond proceeds will primarily fund improvements to the city's water and sewer systems. We view bond provisions as credit-neutral. The series 2025 revenue bonds will not be secured by a debt service reserve, but we believe this is offset by the system?s robust liquidity position. Inclusive of the current issuance, the system has $75.3 million in total debt outstanding as of fiscal 2024 year-end. The rating

...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