...S&P Global Ratings assigned its 'A-1+' short-term rating to the City of Houston, Texas' $100 million general obligation (GO) commercial paper (CP) notes, series E-1. The notes are being reoffered with a new credit agreement and liquidity facility, which will be effective July 13, 2021, through July 12, 2026. The note proceeds will provide interim funding for capital improvements. Houston has multiple CP lines outstanding and has a long history of issuing CP notes that are traditionally refinanced with long-term debt. Liquidity support for the E-1 notes will be provided via a credit agreement with State Street Bank and Trust Co. The new agreement expires July 12, 2026, and it will cover the maximum commitment of $100.0 million in principal and up to $7.4 million in interest, reflecting up to 270 days of accrued interest at the maximum rate (10%). As of June 15, 2021, the city had $55 million in existing draws on the E-1 note program. The rating reflects our view of the city's strong general...
