...S&P Global Ratings assigned its '##-' rating to the City of Hutchins, Texas' series 2018 combination tax and revenue certificates of obligation. At the same time, S&P Global Ratings affirmed its '##-' rating on the city's limited-tax parity debt outstanding. The outlook is stable. The bonds are secured by a continuing ad valorem tax levied annually, within the limits prescribed by law, on all taxable property within the city. Also securing the bonds is a limited pledge of $1,000 of the net revenues of the city's waterworks and sewer system. Despite state statutory tax-rate limitations, we do not differentiate between the city's limited-tax debt and its general creditworthiness, since the ad valorem tax is not derived from a measurably narrower tax base and there are no limitations on the fungibility of resources, which supports our view of the city's overall ability and willingness to pay debt service. The maximum allowable ad valorem tax rate in the State of Texas is $2.50 per $100 of...
