Summary: Irving, Texas; Miscellaneous Tax

S&P Global Ratings affirmed its 'BBB+' long-term rating on Irving, Texas' taxable series 2014A and tax-exempt series 2014B hotel occupancy tax (HOT) revenue bonds. The outlook is stable. The rating reflects our opinion of the city's: Central location in the Dallas-Fort Worth metroplex, Healthy pledged HOT revenue growth, and Inability to issue additional parity debt. Partly offsetting the above strengths, in our view, are: The city's lengthy and escalating debt service schedule that requires HOT revenue growth to meet future debt service requirements, and The inherent volatility associated with lodging-related taxes. The 2014A and 2014B bonds are payable from a first lien on revenue derived from a 2% citywide HOT (also known as the "venue hotel tax") that the electorate

...S&P Global Ratings affirmed its '###+' long-term rating on Irving, Texas' taxable series 2014A and tax-exempt series 2014B hotel occupancy tax (HOT) revenue bonds. The outlook is stable. The rating reflects our opinion of the city's: + Central location in the Dallas-Fort Worth metroplex, + Healthy pledged HOT revenue growth, and + Inability to issue additional parity debt. Partly offsetting the above strengths, in our view, are: + The city's lengthy and escalating debt service schedule that requires HOT revenue growth to meet future debt service requirements, and + The inherent volatility associated with lodging-related taxes. The 2014A and 2014B bonds are payable from a first lien on revenue derived from a 2% citywide HOT (also known as the "venue hotel tax") that the electorate approved in November 2007. The 2014A and 2014B bonds are the city's only debt obligations outstanding payable from the 2% venue tax. Proceeds from these bonds were used to refinance existing debt and fund the city's...

Summary