Summary: Red Oak, Texas; General Obligation

S&P Global Ratings assigned its 'AA-' long-term rating to Red Oak, Texas' series 2020 general obligation (GO) refunding bonds and its combination tax and revenue certificates of obligation, series 2020. At the same time, we affirmed our 'AA-' rating on the city's existing certificates of obligation. The outlook is stable. The GO bonds are payable from revenue of a direct and continuing ad valorem tax levied, within the limits prescribed by law, on all taxable property in the city. State statutes limit the maximum ad valorem tax rate to $2.50 per $100 of taxable assessed valuation. Administratively, Texas' attorney general permits the allocation of $1.50 for all GO debt based on the 90% tax-collection rate calculated at issuance. For fiscal

...S&P Global Ratings assigned its '##-' long-term rating to Red Oak, Texas' series 2020 general obligation (GO) refunding bonds and its combination tax and revenue certificates of obligation, series 2020. At the same time, we affirmed our '##-' rating on the city's existing certificates of obligation. The outlook is stable. The GO bonds are payable from revenue of a direct and continuing ad valorem tax levied, within the limits prescribed by law, on all taxable property in the city. State statutes limit the maximum ad valorem tax rate to $2.50 per $100 of taxable assessed valuation. Administratively, Texas' attorney general permits the allocation of $1.50 for all GO debt based on the 90% tax-collection rate calculated at issuance. For fiscal 2020, the city is levying 70.3645 cents, 16.4442 cents of which it dedicates to debt service. Based on the application of our criteria, titled "Issue Credit Ratings Linked To U.S. Public Finance Obligors' Creditworthiness," published Jan. 22, 2018, on...

Summary