Panorama Village, TX Series 2010 GO Refunding Bond And Certificates Of Obligation Ratings Placed On CreditWatch Negative

DALLAS (S&P Global Ratings) Dec. 6, 2018--S&P Global Ratings placed its 'AA-' 
underlying (SPUR) rating on the City of Panorama Village, Texas' series 2010 
general obligation refunding bonds and certificates of obligation on 
CreditWatch with negative implications.

"We understand that revenue shortfalls and cost overruns in the city's golf 
course fund contributed to negative operating results in fiscal 2017, which 
ultimately reduced Panorama Village's available fund balances to levels we 
consider nominally low," said S&P Global Ratings credit analyst Amahad Brown. 

In addition, the city's audited financials lack complete financial information 
for the golf course fund, so we are unable to assess the potential impact of 
the operations of the golf course fund on the credit quality of the city. 
Based on available information, we understand that the fiscal 2018 budget was 
balanced and the approved 2019 budget reflects a use of fund balance of 
approximately $28,000. In our view, the recent performance trends mark a 
change from the previously very strong budgetary performance, which could have 
negative credit implications. 

Our view of potential credit deterioration also reflects management's 
inability to provide us with timely and sufficient information. Since we take 
into account available information we have in our analysis of Panorama 
Village, these factors could result in a lower rating. Therefore, we consider 
receiving the requested information, including estimates for fiscal 2018 and 
financial information related to the golf course fund, necessary to maintain 
the rating, in accordance with our applicable criteria and policies.

Failure to receive this information within 45 days will likely result in our 
withdrawal of the affected rating, preceded, in accordance with our policies, 
by any change to the rating that we consider appropriate given available 
information. However, if we receive information that we consider sufficient 
and of satisfactory quality, we will conduct a full review and take a rating 
action within 90 days of the CreditWatch placement.
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