The 'A+' rating on Texas City, Texas' GO bonds reflects the city's: Substantial economic and tax base, concentrated in the petrochemical industry; Sustained sound financial performance and position; and Moderate overall debt burden, coupled with manageable future capital needs. Offsetting credit factors include the city's: Highly concentrated tax base; Challenges related to a pending lawsuit with BP Amoco over its property values, coupled with the loss of Wal-Mart Stores Inc. and Kmart Corp., two important sales tax providers; and Below-average income levels. The city's full faith and credit pledge secures the bonds. Located on the Gulf Coast, Texas City, with a population of about 43,000, is a deepwater port nine miles north of Galveston, Texas and 35 miles southeast of
