...S&P Global Ratings assigned its 'A' rating to the City of Houston's estimated $30.5 million in hotel occupancy tax (HOT) and special revenue refunding bonds series 2021. At the same time, we have affirmed our 'A' rating on the Convention and Entertainment Facilities Department outstanding hotel and special tax parity bonds. The outlook is negative. The bonds are special limited obligations of the City of Houston that are payable solely from and secured equally and ratably by a lien on the pledged revenue, which includes the city's HOT at a rate of not less than 7% (5.65% of which constitutes the pledged HOT for so long as the series 2021 bonds are outstanding) and thereafter at a rate of 5.65% for so long as the bonds and any parity bonds remain outstanding. The bonds are also secured by certain revenue derived from parking facilities, which consist of six facilities leased by Houston First Corp. from the city. The pledged revenues are collected in perpetuity throughout the life of the...
