Summary: Plano, Texas; General Obligation

S&P Global Ratings assigned its 'AAA' long-term rating to the city of Plano, Texas' $75.57 million series 2022 general obligation (GO) bonds. At the same time, S&P Global Ratings affirmed its 'AAA' rating on the city's existing GO debt. The outlook is stable. The GO bonds are payable from the city's ad valorem taxes, which are levied on all taxable property. State statutes limit the ad valorem tax rate for cities to $2.50 per $100 of taxable assessed valuation (AV) for all purposes. In addition, the Texas attorney general will permit the allocation of $1.50 of the $2.50 maximum tax rate for ad valorem tax debt service. For fiscal 2022, the city's levy is well below the maximum, at 44.65

...S&P Global Ratings assigned its '###' long-term rating to the city of Plano, Texas' $75.57 million series 2022 general obligation (GO) bonds. At the same time, S&P Global Ratings affirmed its '###' rating on the city's existing GO debt. The outlook is stable. The GO bonds are payable from the city's ad valorem taxes, which are levied on all taxable property. State statutes limit the ad valorem tax rate for cities to $2.50 per $100 of taxable assessed valuation (AV) for all purposes. In addition, the Texas attorney general will permit the allocation of $1.50 of the $2.50 maximum tax rate for ad valorem tax debt service. For fiscal 2022, the city's levy is well below the maximum, at 44.65 cents per $100 of AV, 11.35 cents of which is specifically dedicated to debt service. Given the limited nature of the additional pledged revenues, we base our ratings on these obligations on the city's limited-tax GO pledge. Despite state statutory tax-rate limitations, we do not differentiate between the...

Summary