Standard & Poor's Ratings Services said it raised its underlying rating and long-term rating to A-minus from BBB-plus on Senna Hills Municipal Utility District (MUD), Texas' general obligation debt.
The outlook is stable.
"The upgrade reflects our view that the district's mature status of development and continued property tax base growth have resulted in a declining debt-to-assessed value ratio," said Standard & Poor's credit analyst Alexander Rawlings. The higher rating is also supported by the district's improving general fund reserves.
An unlimited ad valorem tax levied on all taxable property in the MUD and net revenue from the MUD's water and sewer system secure the bonds.
