...S&P Global Ratings assigned its '##-' long-term rating to the City of Semmes, Ala.'s proposed $6.93 million series 2021 general obligation (GO) warrants. The outlook is stable. A pledge of the city's full faith credit and taxing power secures the series 2021 GO warrants. The property tax pledge in Alabama is limited, as the state has statutory tax limitations that include debt service levies. However, our analysis focuses on the strength of the full faith and credit pledge, which we consider equal in credit quality to an unlimited-tax GO pledge. We do not differentiate between the city's limited-tax GO debt and its general creditworthiness. We believe the city's ability to meet its debt service and operate successfully is strongly linked to its general creditworthiness, and there are no significant limitations on the fungibility of resources. The series 2021 GO warrants will fund improvements to city hall and related structures, public safety equipment and vehicles, and municipal park improvements....
