Standard&Poor's Ratings Services affirmed its 'AA+' rating on Houston's general obligation (GO) debt. The outlook is stable. The city's GO debt is payable from an ad valorem tax, levied within the limits prescribed by law, on all taxable property in the city. The rating reflects our opinion of the city's: Strong economy that serves as the center of the Houston-The Woodlands-Sugar Land metropolitan statistical area (MSA); Adequate budgetary flexibility that is weakened by a city charter that imposes limitations on property tax revenue increases; Adequate budgetary performance after a $14 million reduction of year-end general fund balance in fiscal 2014; Very strong liquidity, with adjusted fiscal 2014 year-end total government cash at 38% of adjusted expenditures and 3.1x
