...S&P Global Ratings revised its outlook to negative from stable and affirmed its '##' rating on Trinity River Authority (TRA), Tex.'s series 2018 contract revenue bonds, issued for its Walker-Calloway system. The negative outlook reflects our view of both of the contract city's trend of thin all-in debt service after incorporating administrative transfers, payment in lieu of taxes, franchise fee, and take-or-pay agreements in addition to supporting the general obligation (GO) debt at the contract city level in application of our criteria. We understand that when the city's audited 2018 financials are released that they will show an improvement upon fiscal 2017. Still, as the strong link for this project's rating, a return to stable would be predicated on sustained all-in coverage that is meaningfully better than sum-sufficient 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...
