Standard & Poor's Ratings Services said it raised its long-term and underlying ratings on Travis County Municipal Utility District No. 15, Texas' general obligation debt to BBB-plus from BBB.
Standard & Poor's also assigned its BBB-plus rating to the district's series 2015 unlimited-tax bonds. The outlook is stable for all ratings.
"The upgrade is based on the district's improved financial position, driven in part by continued assessed valuation growth, which we anticipate will remain stable, and the maintenance of an overall debt burden that is commensurate with a BBB-plus rating," said Standard & Poor's credit analyst Oscar Padilla.
An unlimited ad valorem tax levied on all taxable property in the district secures the 2015 bonds. Officials intend to use bond proceeds for developer reimbursement and to redeem bond anticipation loans (2014) that were used to reimburse the developer. Proceeds will also be used to capitalize 12 months of interest for the current issuance and pay interest charges to the developer.
Encompassing 670 acres in Pflugerville's corporate city limits, roughly 16 miles northeast of downtown Austin, Travis County MUD No. 15 was created to construct water, sewer, and drainage infrastructure.
