S&P Global Ratings assigned its 'BBB' long-term rating to Montrose Redevelopment Authority, Texas' anticipated $17.71 million tax-increment contract revenue bonds, series 2023. The outlook is stable. The bonds are secured by a pledge of tax increment revenue generated from within the boundaries of the City of Houston's tax-increment reinvestment zone No. 27 (Montrose Redevelopment Authority). Under the bond ordinance, the city also pledges a debt service reserve (DSR) equal to maximum annual debt service (MADS). Proceeds from the bonds will fund drainage improvements. West of downtown Houston, the zone serves the Montrose neighborhood that officials note offers some unique features such as its walkability and eclectic shops and restaurants that are attracting young professionals and driving very active redevelopment. The
