Summary: Cedar Park, Texas; General Obligation

S&P Global Ratings raised its long-term rating on the City of Cedar Park, Texas' general obligation (GO) debt by one notch to 'AAA' from 'AA+'. At the same time, S&P Global Ratings assigned its 'AAA' long-term rating to the city's approximate $56.2 million GO bonds, series 2022. The outlook is stable. The upgrade reflects our view of the city's consistently strong economic expansion and its proven ability to manage growth while maintaining a very strong financial profile. Although the debt burden is somewhat elevated compared with that of peers, we believe it should remain stable given management's prudent and predictable debt planning. The bonds are secured by a limited ad valorem tax, levied on all taxable property within the city.

...S&P Global Ratings raised its long-term rating on the City of Cedar Park, Texas' general obligation (GO) debt by one notch to '###' from '##+'. At the same time, S&P Global Ratings assigned its '###' long-term rating to the city's approximate $56.2 million GO bonds, series 2022. The outlook is stable. The upgrade reflects our view of the city's consistently strong economic expansion and its proven ability to manage growth while maintaining a very strong financial profile. Although the debt burden is somewhat elevated compared with that of peers, we believe it should remain stable given management's prudent and predictable debt planning. The bonds are secured by a limited ad valorem tax, levied on all taxable property within the city. State statutes limit the ad valorem tax rate for home rule cities to $2.50 per $100 of taxable assessed valuation (AV) for all city purposes. The Texas attorney general will permit the allocation of $1.50 of the $2.50 maximum tax rate for ad valorem tax debt...

Summary