Summary: Oak Grove, Missouri; Appropriations; General Obligation

S&P Global Ratings assigned its 'A+' rating and stable outlook to Oak Grove, Mo.'s roughly $3.8 million series 2020A general obligation (GO) refunding bonds and affirmed its 'A+' rating, with a stable outlook, on the city's existing GO debt. S&P Global Ratings also affirmed its 'A' rating, with a stable outlook, on the city's series 2017 certificates of participation (COPs). Unlimited ad valorem property taxes secure the series 2020A bonds. Officials will use series 2020A bond proceeds to refund prior GO debt for savings. We rate the COPs one notch below the GO debt rating, reflecting annual appropriation risk. Lease-rental payments made by the city, as lessee, to the lessor secure the COPs. We rate the COPs one notch lower

...S&P Global Ratings assigned its 'A+' rating and stable outlook to Oak Grove, Mo.'s roughly $3.8 million series 2020A general obligation (GO) refunding bonds and affirmed its 'A+' rating, with a stable outlook, on the city's existing GO debt. S&P Global Ratings also affirmed its 'A' rating, with a stable outlook, on the city's series 2017 certificates of participation (COPs). Unlimited ad valorem property taxes secure the series 2020A bonds. Officials will use series 2020A bond proceeds to refund prior GO debt for savings. We rate the COPs one notch below the GO debt rating, reflecting annual appropriation risk. Lease-rental payments made by the city, as lessee, to the lessor secure the COPs. We rate the COPs one notch lower than the city's general creditworthiness, reflected by the GO bond rating to account for the risk of annual term renewal associated with lease payments. The city has pledged to include rental payments in its operating budgets, and it considers the affordability of lease...

Summary