Summary: Houston; Letter Of Credit

S&P Global Ratings lowered its short-term rating on Houston's series H-2 general obligation (GO) commercial paper (CP) notes to 'A-1' from 'A-1+'. The rating on the series H-2 notes reflects the credit support Barclays Bank PLC now provides in the form of an irrevocable direct-pay letter of credit (LOC). The series H-2 CP notes were previously supported by the line of credit from Mizuho Bank Ltd., acting through its New York branch. The new LOC fully supports all CP note payment obligations. The new LOC provides coverage for principal plus 270 days' interest at the maximum CP rate of 10%. The rating reflects our opinion of the likelihood noteholders will receive full principal and interest payments when the CP matures.

...S&P Global Ratings lowered its short-term rating on Houston's series H-2 general obligation (GO) commercial paper (CP) notes to 'A-1' from 'A-1+'. The rating on the series H-2 notes reflects the credit support Barclays Bank PLC now provides in the form of an irrevocable direct-pay letter of credit (LOC). The series H-2 CP notes were previously supported by the line of credit from Mizuho Bank Ltd., acting through its New York branch. The new LOC fully supports all CP note payment obligations. The new LOC provides coverage for principal plus 270 days' interest at the maximum CP rate of 10%. The rating reflects our opinion of the likelihood noteholders will receive full principal and interest payments when the CP matures. The issuing and paying agent is instructed not to issue any CP that matures beyond five days prior to the LOC's expiration or exceeds the LOC's available amount....

Summary