S&P Global Ratings assigned its 'AAA' long-term rating to West University Place, Texas' series 2022 certificates of obligation (general obligation [GO]) bonds (anticipated par amount $47.56 million). At the same time, S&P Global Ratings affirmed its 'AAA' long-term rating on the city's previously issued GO and CO bonds. The outlook is stable. Revenue from an unlimited ad valorem tax levied on taxable property in the city secures the CO and GO bonds. The COs are additional secured by a limited pledge of $1,000 of the surplus revenues of the city's water and sewer system. Given the limited revenue pledge, we rate the certificates based on the city's ad valorem pledge. The maximum allowable ad valorem tax rate for municipalities is
