S&P Global Ratings affirmed its 'AA' underlying rating on Houston, Texas' general obligation (GO) debt outstanding. The outlook is stable. The city's debt is payable from the proceeds of an ad valorem tax, levied within the limits prescribed by law, upon all taxable property within the city. State statute limits the ad valorem tax rate for home rule cities to $2.50 per $100 of assessed value (AV) for all city purposes. In fiscal 2021, Houston levied a tax rate of 55.09 cents per $100 of AV, 14.84 cents of which is dedicated to debt service. We do not differentiate between the city's limited-tax GO debt and its general creditworthiness because revenues are not derived from a measurably narrower tax base
