S&P Global Ratings revised its outlook to negative on Houston's existing general obligation (GO) debt. We assigned our 'AA' rating to Houston's roughly $592.77 million series 2024A GO refunding bonds and roughly $132.74 million series 2024B public improvement refunding bonds. At the same time, we affirmed our 'A-1+' short-term rating on to the city's outstanding commercial paper (CP) notes. The outlook, where applicable, is negative. The outlook revision reflects at least a one-in-three chance that we could lower the rating during our two-year outlook period due to an expected spend-down in reserves due to anticipated budgetary shortfalls related to increased debt service and salary increases resulting from a legal settlement, with limited capacity to raise revenue due to a city
