Tulsa, OK 2017, 2017A GO Bonds Assigned 'AA' Ratings; Other Ratings Affirmed
DALLAS (S&P Global Ratings) Jan. 3, 2017--S&P Global Ratings assigned its 'AA' long-term rating to Tulsa, Okla.'s series 2017 general obligation (GO) bonds and series 2017A GO refunding bonds. At the same time, we affirmed our 'AA' long-term rating on the city's existing GO debt and our 'AA-' long-term and underlying ratings on the Tulsa Parking Authority's parking revenue debt. The outlook on all ratings is stable. "The rating reflects our view of Tulsa's adequate economy, very strong management, and adequate budgetary performance," said S&P Global Ratings credit analyst Joshua Travis. The series 2016 and 2016A bonds are GOs of the city, payable from an unlimited ad valorem tax levied on all taxable property within its borders. Refunding bond proceeds will be used to refund existing debt for savings while the new-money bond proceeds will be used to fund various street construction and rehabilitation projects. The parking authority's bonds are secured by the parking system's gross revenues and the city of Tulsa's unconditional annual appropriation pledge to provide adequate revenues to the authorities to cover debt service costs, including principal and interest payments on the bonds. Tulsa, Oklahoma's second-largest city, with an estimated population of 401,838, is in Osage, Tulsa, and Wagoner counties. "The stable outlook reflects our expectation that Tulsa will continue to benefit from its role as a regional economic center," added Mr. Travis. While the economic base contains a strong oil-and-gas component, we believe the economy is diversified enough to withstand any near-term volatility in that industry. The outlook also reflects our expectation that the city's financial management practices will allow it to maintain its very strong budgetary flexibility and liquidity. We do not anticipate changing the rating during the two-year outlook horizon.
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.globalcreditportal.com and at www.spcapitaliq.com. All ratings affected by this rating action can be found on the S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column.
| Primary Credit Analyst: | Joshua Travis, Dallas 972-367-3340; joshua.travis@spglobal.com |
| Secondary Contact: | Theodore A Chapman, Dallas (1) 214-871-1401; theodore.chapman@spglobal.com |
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