...S&P Global Ratings assigned its '###' long-term rating to Denton County, Texas' $20 million tax notes series 2022. The outlook is stable. The notes constitute direct obligations of the county payable from an annual ad valorem tax levied against all taxable property in the county, within the limits prescribed by law. Proceeds from the sale of the notes, together with funds from the county, will be used for constructing, improving, and equipping county buildings. Denton County's general obligation (GO) bonds are eligible to be rated above the sovereign because we believe the county can maintain better credit characteristics than the U.S. in a stress scenario. Under our criteria "Ratings Above The Sovereign: Corporate And Government Ratings--Methodology And Assumptions," published Nov. 19, 2013, U.S. local governments are considered moderately sensitive to country risk. The county's GO pledge is the primary source of security on the debt; this severely limits the possibility of negative sovereign...
