Standard&Poor's Ratings Services assigned its 'AA' long-term rating to Horseshoe Bay, Texas' series 2011 combination tax and revenue certificates of obligation. The outlook is stable. The rating reflects our view of the city's: Role as a high-end luxury resort city, serving as a popular destination for both vacation/second homeowners and retirees; Very strong wealth and income levels; Very strong financial position, bolstered by the maintenance of a general fund balance historically in excess of 100% of operations; and Low debt burden as a percent of market value. The certificates constitute direct obligations of the city and are secured by a continuing and direct annual ad valorem tax levied on all taxable property within the city. The certificates are
