NEW YORK - Standard & Poor's Ratings Services said it raised its underlying rating (SPUR) to AA-minus from A-plus on Atascosa County, Texas' existing general obligation (GO) debt. At the same time, Standard & Poor's assigned its AA-minus long-term rating to the county's series 2010 GO refunding bonds and series 2010 tax notes. The outlook on all ratings is stable.
"The raised rating is due primarily to the county's strong tax base growth," said Standard & Poor's credit analyst Lauren Spalten.
Bond proceeds will be used to refund a portion of the county's outstanding bonds. Tax note proceeds will be used to construct, equip, renovate, and purchase various facilities throughout the county.
Atascosa County's tax base has continued to grow rapidly. Assessed valuation (AV) increased by about 22% from fiscal 2007 to $1.8 billion in fiscal 2010. County officials attribute this continued growth to a combination of increased residential development and increased mineral wealth. There is no tax base concentration; the 10 leading taxpayers, six of which are petroleum producers or utilities, account for a diverse 15% of total AV.
Atascosa County, with an estimated population of 43,876, is directly south of Bexar County in south-central Texas. The county seat, Jourdanton, is approximately 35 miles south of San Antonio, where many residents commute to for employment. The county's economy is predominately based in agriculture -- namely, peanuts, strawberries, and cattle -- and oil and gas production.
