Summary: Irving, Texas; General Obligation

S&P Global Ratings revised the outlook to negative from stable and affirmed its 'AAA' long-term rating on Irving, Texas' general obligation (GO) debt and certificates of obligation (COs). Concurrently, S&P Global Ratings has assigned its 'AAA' long-term rating to Irving's series 2018 GO bonds and series 2018A tax notes, reflecting the application of its "Issue Credit Ratings Linked To U.S. Public Finance Obligors' Creditworthiness" criteria (published Jan. 22, 2018, on RatingsDirect). The outlook revision reflects our view that Irving's actuarially determined contributions to retirement plans will continue to rise and that, absent benefit reductions or overall expenditure growth, the existing charter cap will limit the city's ability to make full required contributions, which will further weaken the pension plans' funded

...S&P Global Ratings revised the outlook to negative from stable and affirmed its '###' long-term rating on Irving, Texas' general obligation (GO) debt and certificates of obligation (COs). Concurrently, S&P Global Ratings has assigned its '###' long-term rating to Irving's series 2018 GO bonds and series 2018A tax notes, reflecting the application of its "Issue Credit Ratings Linked To U.S. Public Finance Obligors' Creditworthiness" criteria (published Jan. 22, 2018, on RatingsDirect). The outlook revision reflects our view that Irving's actuarially determined contributions to retirement plans will continue to rise and that, absent benefit reductions or overall expenditure growth, the existing charter cap will limit the city's ability to make full required contributions, which will further weaken the pension plans' funded status and overstate the city's financial performance. Given that the city has no concrete plans to shore up its pensions, either through reduction of benefits or material...

Summary