Trinity River Authority, TX Bond Rating Outlook Revised To Negative On Member Affordability, Financial Pressures

ENGLEWOOD (S&P Global Ratings) Sept. 13, 2024--S&P Global Ratings revised the outlook to negative from stable and affirmed its 'AA-' rating on the Trinity River Authority (TRA), Texas' existing revenue improvement bonds, issued for the Red Oak Creek project. At the same time, we assigned our 'AA-' long-term rating to TRA's approximately $9.9 million series 2024 revenue improvement and refunding bonds, issued for the Red Oak Creek project. "The outlook revision reflects the project's potential for rate affordability pressure within major member cities due to rising costs, and weakness within financials at the largest contract participants," said S&P Global Ratings credit analyst Jaime Blansit. The bonds are secured by a first lien on the contract revenues of the system. The

...September 13, 2024 ENGLEWOOD (S&P Global Ratings) Sept. 13, 2024--S&P Global Ratings revised the outlook to negative from stable and affirmed its '##-' rating on the Trinity River Authority (TRA), Texas' existing revenue improvement bonds, issued for the Red Oak Creek project. At the same time, we assigned our '##-' long-term rating to TRA's approximately $9.9 million series 2024 revenue improvement and refunding bonds, issued for the Red Oak Creek project. "The outlook revision reflects the project's potential for rate affordability pressure within major member cities due to rising costs, and weakness within financials at the largest contract participants," said S&P Global Ratings credit analyst Jaime Blansit. The bonds are secured by a first lien on the contract revenues of the system. The series 2024 proceeds will be used to fund improvements and extensions to the authority's Red Oak Creek Regional Wastewater System. We view the bond provisions as credit neutral, which include a debt...

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