DALLAS (S&P Global Ratings) Dec. 18, 2017--S&P Global Ratings has assigned its 'AAA' issuer credit rating and stable outlook to Harris County Flood Control District, Texas. At the same time, S&P Global Ratings has assigned its 'A-1+' short-term rating to the district's series H limited-tax commercial paper (CP) notes. S&P Global Ratings also affirmed its 'AAA' rating, with a stable outlook, on the district's series 2015A general obligation bonds.
"The 'AAA' rating and stable outlook reflect the district's strong general creditworthiness and very strong liquidity, as well as the significant taxing margin under the district's taxing authority," said S&P Global Ratings credit analyst Andy Hobbs.
The district's limited ad valorem tax, levied on all taxable property in Harris County, secures the notes. County officials have the authority to levy an ad valorem tax rate of up to 30 cents per $100 of assessed value (AV), with the portion dedicated to debt service limited to 15 cents. The current rate is 2.831 cents per $100 of AV.
The Harris County Flood Control District is a special purpose district, created by the Texas Legislature in 1937 and governed by Harris County Commissioners Court. The district provides programs and policies to protect homes and businesses from the hazards of flooding and to facilitate economic development.
The stable outlook reflects our expectation the district will maintain very strong reserves and liquidity, supported by solid budgetary performance and significant margin within the district's taxing authority. Therefore, we do not expect to change the rating in the two-year outlook horizon.
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