S&P Global Ratings has affirmed its 'A-' long-term and underlying ratings on Houston's (Convention and Entertainment Facilities Department) hotel occupancy tax (HOT) and special revenue bonds. The outlook is stable. The bonds are payable from a first-lien pledge of certain revenues, consisting of: a 5.65% citywide HOT, and parking revenues from certain city-owned facilities. A reserve funded at average annual debt service on all parity bonds provides liquidity for debt service. The ratings reflect our view of the following factors: A strong and diverse economy, with a broad HOT base that includes all hotels and motels in the city; Relatively stable 1.70x coverage of annual debt service by fiscal 2016 pledged revenues. Offsetting factors include: Declines in pledged revenues in
