Fort Worth, TX Series 2019 General Purpose Bonds, Tax Notes Rated 'AA'; Outlook Stable

DALLAS (S&P Global Ratings) May 24, 2019--S&P Global Ratings assigned its 'AA' long-term rating to the City of Fort Worth, Texas' series 2019 general purpose bonds and series 2019 tax notes. At the same times, S&P Global Ratings affirmed its 'AA' long-term rating on the city's limited tax general obligation (GO) debt outstanding. The outlook on all ratings is stable.
Both the general purpose bonds and the tax notes are payable from an annual ad valorem tax levied, within the limits prescribed by law, on all taxable property within the city. Based on the application of our criteria, "Issue Credit Ratings Linked To U.S. Public Finance Obligors’ Creditworthiness," published Jan. 22, 2018, we view the limited-tax GO debt pledge on par with the city's general creditworthiness. The ad valorem taxes are not levied on a narrower or distinctly different tax base, and there are no limitations on the fungibility of resources available for the payment of debt service. The series 2019 general purpose bond proceeds will fund capital projects. The series 2019 tax note proceeds will go toward the purchase of fire safety equipment.
The rating reflects our view of Fort Worth's:
  • Adequate economy;
  • Very strong management;
  • Weak budgetary performance;
  • Very strong budgetary flexibility;
  • Very strong liquidity;
  • Very weak debt and contingent liability profile; and
  • Strong institutional framework score.
"The stable outlook reflects our view that the city will likely continue to see strong economic growth and taxable value gains due to its participation in the Dallas-Fort Worth metropolitan statistical area," said S&P Global Ratings credit analyst Stephen Doyle. "The outlook also reflects our view that the city's recent pension modifications show that officials are committed to reducing the plan's significant net pension liability through a combination of contribution increases, benefit changes, and actuarial assumption changes, which may ease long-term budgetary pressures, even though these pressures will likely persist, or potentially worsen, during the two-year outlook period," added Mr. Doyle. The full effect of the recent changes is not known at this time, but we do not expect these changes to improve the net pension liability or the plan's funded status during the outlook period. At this time, we do not expect to change the rating within the next two years.
We work across the world

From London to San Francisco, to our home base in (Saint Helier) Jersey, we’re looking for extraordinary and creative scientists to help us drive the field forward.

Disclaimers: AC Investment Inc. currently does not act as an equities executing broker or route orders containing equities securities. All data and information is provided “as is” for personal informational purposes only, and is not intended for trading purposes or advice. Please consult your broker or financial representative to verify pricing before executing any trade.

77 Massachusetts Avenue Cambridge, MA 02139 617-253-1000 pr@ademcetinkaya.com