NEW YORK - Standard & Poor's Ratings Services said it raised its rating on Barker-Cypress Municipal Utility District, Texas' general obligation bonds to BBB underlying rating (SPUR) from BBB-minus, reflecting continued tax base growth and a moderation of debt levels.
At the same time, Standard & Poor's assigned its BBB rating and stable outlook to the district's $3.26 million series 2006 unlimited tax bonds. The outlook is stable. The sale date is June 27.
"The stable outlook reflects the expectation that the district's property-tax-base growth will continue, allowing debt levels to continue to moderate," said Standard & Poor's credit analyst James Breeding. He added: "The stable outlook also reflects the expectation that the district will maintain its solid financial position as it manages future capital projects."
The BBB rating reflects the district's limited property tax base, and high overall property tax rate.
These factors are offset, in part, by the district's rapid property-tax base growth; participation in the Houston MSA's deep and diverse economy; and solid financial performance, coupled with healthy reserves.
