...S&P Global Ratings assigned its '##' rating, with a stable outlook, to Fayetteville's, N.C.'s series 2018 limited obligation bonds (LOBs). At the same time, we affirmed our '##+' rating on the city's unlimited general obligation (GO) debt as well as our '##' rating on Fayetteville's previously issued appropriation-backed debt. The series 2018 LOBs are payable from payments to the trustee by the city pursuant to the trust agreement. The city's budget officer is required to include payment in Fayetteville's budget each year. The city can only delete the budget item by a city council resolution with a statement explaining the deletion. A deed of trust--consisting of the mortgaged property that includes the baseball stadium--further secures the bonds. We understand there is no debt service reserve fund, but principal and interest payments are due each June 1 and Dec. 1; this mitigates late budget adoption risk. Based on the application of our criteria, titled "Issue Credit Ratings Linked To...
