...S&P Global Ratings assigned its '##-' long-term rating to Texas City, Texas' series 2018 certificates of obligation. At the same time, S&P Global Ratings affirmed its '##-' rating on the city's existing general obligation (GO) bonds and certificates of obligation (COs). The outlook is stable. The bonds are payable from the city's ad valorem taxes, which are levied on all taxable property in Texas City. Despite state statutory tax-rate limitations, we do not differentiate between the city's limited-tax debt rating and its general creditworthiness. That's because the ad valorem taxes are collected from a broad tax base and there are no restrictions on what the limited tax can be used for, which supports our view of the city's overall ability and willingness to pay debt service. State statutes limit the ad valorem tax rate for cities to $2.50 per $100 of taxable assessed valuation (AV) for all purposes. In addition, the Texas attorney general will permit the allocation of $1.50 of the $2.50...
