Summary: Newport Municipal Utility District, Texas; General Obligation

S&P Global Ratings assigned its 'A' long-term rating to Newport Municipal Utility District (MUD), Texas' series 2018 unlimited-tax bonds. At the same time, S&P Global Ratings affirmed its 'A' rating on the district's general obligation debt outstanding. The outlook is stable. The rating reflects our assessment of the district's: Mature status of development and strong taxable value growth; Adequate financial position and large tax base; and Low direct and total property tax rate, which provides revenue-raising flexibility. Partly offsetting the above strengths, in our opinion, is the district's high overall net debt burden. The bonds are secured by revenue from an unlimited ad valorem tax levied on all taxable property within the district. Bond proceeds will fund developer reimbursements and

...S&P Global Ratings assigned its 'A' long-term rating to Newport Municipal Utility District (MUD), Texas' series 2018 unlimited-tax bonds. At the same time, S&P Global Ratings affirmed its 'A' rating on the district's general obligation debt outstanding. The outlook is stable. The rating reflects our assessment of the district's: + Mature status of development and strong taxable value growth; + Adequate financial position and large tax base; and + Low direct and total property tax rate, which provides revenue-raising flexibility. Partly offsetting the above strengths, in our opinion, is the district's high overall net debt burden. The bonds are secured by revenue from an unlimited ad valorem tax levied on all taxable property within the district. Bond proceeds will fund developer reimbursements and various capital improvements. Newport MUD covers approximately 2,119 acres about 23 miles northeast of downtown Houston within the city's extraterritorial jurisdiction. The district, located in...

Summary