DALLAS (S&P Global Ratings) May 30, 2018–S&P Global Ratings revised the outlook to negative from stable and affirmed its ‘AAA’ long-term rating on Irving, Texas’ general obligation (GO) debt and certificates of obligation (COs). Concurrently, S&P Global Ratings has assigned its ‘AAA’ long-term rating to Irving’s series 2018 GO bonds and series 2018A tax notes, reflecting the application of its "Issue Credit Ratings Linked To U.S. Public Finance Obligors’ Creditworthiness" criteria (published Jan. 22, 2018, on RatingsDirect). "The outlook revision reflects our view that Irving’s actuarially determined contributions to retirement plans will continue to rise and that, absent benefit reductions or overall expenditure growth, the existing charter cap will limit the city’s ability to make full required contributions," said S&P Global Ratings credit analyst Karolina Norris. "This would further weaken the pension plans’ funded status and overstate the city’s financial performance," Ms. Norris added.
RELATED RESEARCH 2017 Update Of Institutional Framework For U.S. Local Governments Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com.
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