Summary: Prattville, Alabama; Appropriations; General Obligation

S&P Global Ratings assigned its 'AA-' long-term rating to Prattville, Ala.'s series 2017 general obligation (GO) sewer bonds. At the same time, S&P Global Ratings affirmed its 'AA-' long-term rating and underlying rating (SPUR) on the city's GO debt outstanding. The outlook is stable. The warrants constitute GO of the city for the payment of which Prattville's full faith and credit and taxing power is irrevocably pledged. The property tax pledge in Alabama is limited; the state has statutory tax limitations that include levies for debt service. While the tax is technically limited, our analysis focuses on the strength of the full-faith-and-credit pledge, which we view as being of equal credit quality as an unlimited GO tax. The series 2016

...S&P Global Ratings assigned its '##-' long-term rating to Prattville, Ala.'s series 2017 general obligation (GO) sewer bonds. At the same time, S&P Global Ratings affirmed its '##-' long-term rating and underlying rating (SPUR) on the city's GO debt outstanding. The outlook is stable. The warrants constitute GO of the city for the payment of which Prattville's full faith and credit and taxing power is irrevocably pledged. The property tax pledge in Alabama is limited; the state has statutory tax limitations that include levies for debt service. While the tax is technically limited, our analysis focuses on the strength of the full-faith-and-credit pledge, which we view as being of equal credit quality as an unlimited GO tax. The series 2016 Historic Prattville Redevelopment Authority redevelopment bonds are secured by lease payments made to the authority by the city. We rate the bonds on parity with the city's GO debt because the lease payments are not subject to appropriation and the city's...

Summary