S&P Global Ratings assigned its 'AA+' rating and stable outlook to Horseshoe Bay, Texas' series 2016 combination tax and revenue certificates of obligation and affirmed its 'AA+' rating, with a stable outlook, on the city's existing general obligation (GO) debt. The certificates are payable from an annual ad valorem tax levied against all taxable property in the city within the limits prescribed by law. The certificates are also payable through a limited $1,000 pledge of surplus revenue from the city's water and wastewater system. However, we rate the certificates based on the city's ad valorem pledge. State statutes provide for a maximum ad valorem tax rate of $2.50 per $100 of taxable assessed valuation (AV) for all city purposes, including
