Standard & Poor's Ratings Services said it raised its rating on Fort Bend County Municipal Utility District (MUD) No. 21, Texas' series 2008 unlimited-tax and contract revenue bonds and series 2012 unlimited-tax and contract revenue refunding bonds five notches to AAA from A.
The outlook is stable.
The five-notch upgrade reflects Standard & Poor's opinion of the MUD's dissolution and Sugar Land's annexation of the MUD. On Feb. 18, 2014, Sugar Land's city council adopted ordinance No. 1944, which dissolved the MUD effective March 31, 2014.
"We recognize that Sugar Land will take ownership of the MUD's property and assets and that it will be liable for all MUD debts, liabilities, and obligations," said Standard & Poor's credit analyst Omar Tabani. "Therefore, the rating on the MUD's previously issued series 2008 and 2012 bonds now reflects the rating on Sugar Land's general obligation debt."
The stable outlook reflects Standard & Poor's opinion of the outlook on the rating on Sugar Land's general obligation debt.
