Standard & Poor's Ratings Services said it raised its underlying rating and long-term rating on Harris County Municipal Utility District No. 249, Texas' general obligation debt to BBB-plus from BBB.
The outlook is stable.
"The upgrade is based on an increase in the property tax base, which has resulted in moderation of the overall net debt burden that we consider commensurate with a BBB-plus rated credit," said Standard & Poor's credit analyst Lauren Spalten.
Munis are entering a negative feedback loop, according to J.P. Morgan analysts led by Peter DeGroot.
Credit ratings for California utilities could face downward pressure as recurring wildfire risks test safety funds and strain balance sheets.
"In a few years, Brightline may have to consider going through something like this again," warned one investor.
Bondholders and Assured Guaranty are providing substantial funding in post-petition and post-bankruptcy packages to keep the project operating.
GASB has issued updated questions and answers designed to clarify how subsidies relate to operating revenue, an important distinction affecting higher education, and transportation entities.
Ahead of a refinancing next week and a new money deal next month, Chicago's spreads have widened, suggesting the market may be pricing in a downgrade, analysts said.
