Standard & Poor's Ratings Services said it has raised its underlying rating on Fort Bend County Municipal Utility District No. 129, Texas' general obligation debt one notch to BBB-plus from BBB.
The outlook is stable.
"The upgrade is based on the MUD's moderating debt levels and strengthening finances," said Standard & Poor's credit analyst Alexander Rawlings.
The BBB-plus rating reflects the rating agency's assessment of the district's: mature status of development, which will limit future capital needs; very strong general fund reserves; and healthy tax base growth.
The preceding strengths are somewhat offset by the district's high overall net debt burden.
The 630-acre MUD is part of the 3,700-acre master-planned community of Riverstone and is located in the extraterritorial jurisdiction of Missouri City. The district is approximately 21 miles southwest of downtown Houston.
Of developable land within the district, 94% is served with utility infrastructure, which the agency views as the mature stage of development. This indicates that the MUD's future capital needs will be limited.
