...S&P Global Ratings assigned its '##' long-term rating to the Trinity River Authority (TRA), Tex.'s series 2018 contract revenue bonds, issued for its Walker-Calloway system. The outlook is stable. We base the rating on our opinion of the collective general creditworthiness of the two cities that benefit from the system, North Richland Hills and Hurst, and their contractual commitments to the TRA. North Richland Hills' allocation in the Walker-Calloway system, and therefore its share of the authority's debt service requirements, is 79.69%, with Hurst responsible for the remainder. While neither city has any revenue bond debt outstanding, we view both as having extremely strong enterprise risk profiles and strong financial risk profiles in their respective waterworks and sanitary sewer utility systems. We also view the TRA's ability to adjust each city's revenue requirements as a key credit strength, essentially creating an unlimited step-up. Factors that we believe support each of the cities'...
