Summary: Dodge City, Kansas; Sales Tax

S&P Global Ratings lowered its rating on the Dodge City, Kan.'s sales tax revenue bonds to 'A' from 'A+'. The outlook is stable. While debt service coverage (DSC) remains stable, the downgrade reflects the implementation of our "Priority-Lien Tax Revenue Debt" criteria (published Oct. 22, 2018, on RatingsDirect), specifically our use of the city's additional bonds test (ABT) as the baseline for our analysis of debt service coverage, rather than current coverage. Under the provisions of the indenture, the 2016 bonds are secured by the city's sales tax, its portion of the county sales tax, and the county's portion of the county sales tax. Pledged revenue, held in a separate fund, consists of a 0.5% citywide retailers' sales tax and

...S&P Global Ratings lowered its rating on the Dodge City, Kan.'s sales tax revenue bonds to 'A' from 'A+'. The outlook is stable. While debt service coverage (DSC) remains stable, the downgrade reflects the implementation of our "Priority-Lien Tax Revenue Debt" criteria (published Oct. 22, 2018, on RatingsDirect), specifically our use of the city's additional bonds test (ABT) as the baseline for our analysis of debt service coverage, rather than current coverage. Under the provisions of the indenture, the 2016 bonds are secured by the city's sales tax, its portion of the county sales tax, and the county's portion of the county sales tax. Pledged revenue, held in a separate fund, consists of a 0.5% citywide retailers' sales tax and a 0.5% countywide retailers' sales tax. In addition to the 0.5% city sales tax, Dodge City levies an additional 0.5% local-option sales tax for general operations; however, it has not pledged this tax to the payment of the sales tax revenue bonds. In addition to...

Summary