Summary: Overland Park, Kansas; General Obligation

S&P Global Ratings revised its outlook to negative from stable on the City of Overland Park, Kan.'s general obligation (GO) debt and affirmed the 'AAA' long-term rating on the debt. At the same time, S&P Global Ratings assigned its 'AAA' long-term rating to the city's series 2021A ($29,250,000) internal improvement bonds. The outlook change reflects our view that the city's governance risk is elevated because it is not actively managing its distressed Overland Park Development Corp. (OPDC) revenue bonds (BB-/Negative) outside of additional marketing efforts and voluntary disclosures. In addition, if the OPDC's revenue bonds coverage--secured by 6% of the city's 9% transient guest tax--continues to decline and the city defaults on this obligation, or the city loses control of

...S&P Global Ratings revised its outlook to negative from stable on the City of Overland Park, Kan.'s general obligation (GO) debt and affirmed the '###' long-term rating on the debt. At the same time, S&P Global Ratings assigned its '###' long-term rating to the city's series 2021A ($29,250,000) internal improvement bonds. The outlook change reflects our view that the city's governance risk is elevated because it is not actively managing its distressed Overland Park Development Corp. (OPDC) revenue bonds (##-/Negative) outside of additional marketing efforts and voluntary disclosures. In addition, if the OPDC's revenue bonds coverage--secured by 6% of the city's 9% transient guest tax--continues to decline and the city defaults on this obligation, or the city loses control of a key economic asset, we believe this would affect our view of the city's economic profile. See our analysis on the revenue bonds published Feb. 11, 2021. Overland Park's full-faith-and-credit pledge, including an unlimited-ad...

Summary