Summary: Cleveland; General Obligation; Miscellaneous Tax

S&P Global Ratings lowered its long-term rating and underlying rating (SPUR) to 'AA' from 'AA+' on Cleveland's subordinate-lien income tax bonds and unrestricted income tax bonds (police and fire pension bonds). At the same time, S&P Global Ratings affirmed its 'AA+' long-term rating and SPUR on the city's general obligation (GO) bonds, reflecting an additional first-lien pledge of the city's 2.5% income tax. A subordinate lien on the total 2.5% income tax secures the subordinate income tax bonds. Securing debt service on the subordinate-lien unrestricted income tax bonds (police and fire pension bonds) is a subordinate lien on the unrestricted portion--or eight-ninths--of the city's income taxes levied at a rate of 2.5%. The outlook is stable. The rating action reflects

...S&P Global Ratings lowered its long-term rating and underlying rating (SPUR) to '##' from '##+' on Cleveland's subordinate-lien income tax bonds and unrestricted income tax bonds (police and fire pension bonds). At the same time, S&P Global Ratings affirmed its '##+' long-term rating and SPUR on the city's general obligation (GO) bonds, reflecting an additional first-lien pledge of the city's 2.5% income tax. A subordinate lien on the total 2.5% income tax secures the subordinate income tax bonds. Securing debt service on the subordinate-lien unrestricted income tax bonds (police and fire pension bonds) is a subordinate lien on the unrestricted portion--or eight-ninths--of the city's income taxes levied at a rate of 2.5%. The outlook is stable. The rating action reflects the application of our priority-lien tax revenue debt criteria, published Oct. 22, 2018 on RatingsDirect, which factors in both the strength and stability of the pledged revenue as well as the general credit quality of...

Summary