...S&P Global Ratings revised its rating outlook to negative from stable on Wharton, Texas' outstanding general obligation bonds and certificates of obligation. At the same time, S&P Global Ratings affirmed its 'A+' underlying rating (SPUR) on these obligations. The outlook revision reflects S&P Global Ratings' opinion of the city's gradual decline in general fund cash levels and resulting overstatement of available reserves. Although we recognize that cash reserves improved during fiscal 2019, Wharton lacks a recent track record of maintaining very strong cash reserves in the general fund, which we believe could be exacerbated by a COVID-19 driven recessionary period. The negative outlook reflects our view that there is at least a one-in-three chance that we could lower the rating within the two-year outlook period. Wharton's GO bonds and certificates of obligation constitute direct obligations of the city, payable from the proceeds of a continuing, direct annual ad valorem tax, within the...
