Summary: Prattville, Alabama; Appropriations; General Obligation

S&P Global Ratings assigned its 'AA-' rating and stable outlook to Prattville, Ala.'s roughly $9.715 million series 2022A general obligation (GO) warrants and roughly $3.08 million series 2022B federally taxable GO warrants and affirmed its 'AA-' rating, with a stable outlook, on the city's existing GO debt. The warrants are a GO of the city, the payment of which Prattville irrevocably pledges its full-faith-and-credit-and-taxing power. The property tax pledge in Alabama is limited; the state has statutory tax limitations that include debt-service levies. While the tax is technically limited, our analysis focuses on the strength of the full-faith-and-credit pledge, which we view as an equal credit quality to an unlimited-tax GO pledge. Lease payments made to the authority by the

...S&P Global Ratings assigned its '##-' rating and stable outlook to Prattville, Ala.'s roughly $9.715 million series 2022A general obligation (GO) warrants and roughly $3.08 million series 2022B federally taxable GO warrants and affirmed its '##-' rating, with a stable outlook, on the city's existing GO debt. The warrants are a GO of the city, the payment of which Prattville irrevocably pledges its full-faith-and-credit-and-taxing power. The property tax pledge in Alabama is limited; the state has statutory tax limitations that include debt-service levies. While the tax is technically limited, our analysis focuses on the strength of the full-faith-and-credit pledge, which we view as an equal credit quality to an unlimited-tax GO pledge. Lease payments made to the authority by the city secure series 2016 Historic Prattville Redevelopment Authority redevelopment bonds. We rate the on parity with the city's GO debt because lease payments are not subject to appropriation and the city's obligation...

Summary