...April 23, 2020 FARMERS BRANCH (S&P Global Ratings) April 23, 2020--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 our opinion of the city's gradual decline in general fund cash levels and resulting overstatement of available reserves," said S&P Global Ratings credit analyst Amahad Brown. 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. The negative outlook reflects our view that there is at least a one-in-three...
