S&P Global Ratings revised the outlook to negative from stable and affirmed its 'A+' underlying rating on Hitchcock Independent School District (ISD), Texas' general obligation (GO) debt outstanding. The outlook revision reflects our view of the district's recent negative operational performance and the uncertainty regarding management's ability to include realistic revenue and expenditure assumptions in the budget. An unlimited ad valorem tax levied on all taxable property within the district secures the GO bonds outstanding. Located south of downtown Houston, Hitchcock ISD has benefitted from growth within the greater Houston metropolitan statistical area, as reflected in its very strong and diverse property tax base. Although the district is expecting home development and sales to slow amid higher interest rates, we
