...S&P Global Ratings has revised its outlook to stable from negative and affirmed its '##' long-term and underlying ratings on the City of Houston, Texas' general obligation (GO) bonds. The outlook revision reflects our view that recent changes to Houston's pension plans counteract any further deterioration in funded status. The outlook also reflects the strength in the local economy that we expect will grow in the near term, and the city's stable financial metrics despite unforeseen expenditures in fiscal 2018 due to Hurricane Harvey. Houston's ad valorem tax pledge, within the limits prescribed by law, secures the GO bonds. Despite a revenue tax cap that limits the city's ad valorem tax growth, we did not make a rating distinction for the limited-tax GO pledge due to the city's stable and very strong liquidity, which provides it financial flexibility to manage any unforeseen challenge. The '##' rating reflects our opinion of the city's:...
