Summary: Newport Municipal Utility District, Texas; General Obligation

S&P Global Ratings assigned its 'A' long-term rating and stable outlook to Newport Municipal Utility District (MUD), Texas' series 2019 unlimited-tax and revenue refunding general obligation (GO) bonds and affirmed its 'A' long-term rating and underlying rating (SPUR), with a stable outlook, on the MUD's existing GO debt. Revenue from an unlimited ad valorem tax levied on all taxable property within the MUD secures the bonds. Officials intend to use series 2019 bond proceeds to refund the MUD's debt for interest-rate savings. This refunding will not restructure the existing debt or extend its maturities. The MUD continues to develop despite its maturity, in our opinion. Hurricane Harvey had an effect on the MUD's finances during the past two fiscal years,

...S&P Global Ratings assigned its 'A' long-term rating and stable outlook to Newport Municipal Utility District (MUD), Texas' series 2019 unlimited-tax and revenue refunding general obligation (GO) bonds and affirmed its 'A' long-term rating and underlying rating (SPUR), with a stable outlook, on the MUD's existing GO debt. Revenue from an unlimited ad valorem tax levied on all taxable property within the MUD secures the bonds. Officials intend to use series 2019 bond proceeds to refund the MUD's debt for interest-rate savings. This refunding will not restructure the existing debt or extend its maturities. The MUD continues to develop despite its maturity, in our opinion. Hurricane Harvey had an effect on the MUD's finances during the past two fiscal years, but management expects insurance or the Federal Emergency Management Agency (FEMA) to reimburse the majority of these storm-related costs. Debt metrics could increase modestly during the next two years as the MUD reimburses developers...

Summary