The rating on Texas City, Texas' certificates of obligation is based on a limited-tax pledge of the city and reflects: A substantial economic and tax base highly concentrated in the petrochemical industry, Sound financial performance and position, and A moderate overall debt burden. The city has entered into an agreement with the Texas City Economic Development Corp., whereby the corporation has agreed to make the debt service payments on the certificates from a dedicated one-half cent sales tax; however, the contract payments are not pledged as security for the certificates. Located on the Gulf Coast, Texas City (population 43,000) is a deep-water port nine miles north of Galveston and 35 miles southeast of Houston. The economy and tax base is
