Rating Action: Moody's assigns A2 to Emerald Forest Utility District, TX's GO bondsGlobal Credit Research - 02 Sep 2022New York, September 02, 2022 -- Moody's Investors Service has assigned an A2 rating to Emerald Forest Utility District, TX's approximately $4.8 million Unlimited Tax Bonds, Series 2022. Moody's maintains the A2 rating on the district's (MUD) outstanding general obligation unlimited tax (GOULT) bonds. Post-sale, the district will have approximately $8.9 million of debt outstanding.RATINGS RATIONALEThe A2 reflects the district's moderately sized, built out tax base with above average resident incomes. The rating also considers the district's strong reserves which will remain stable despite planned capital expenses. Finally, the A2 incorporates the manageable debt burden and lack of pension and other post-employment benefit (OPEB) liabilities.RATING OUTLOOKMoody's does not typically assign outlooks to local governments with this amount of debt outstanding.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING- Meaningful expansion of taxable base- Material reduction of debt burdenFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING- Sharp tax base contraction- Material increase in the debt burden- Deterioration of financial positionLEGAL SECURITYThe bonds are payable from a direct and continuing ad valorem tax levied against all taxable property within the district without limitation as to rate or amount.USE OF PROCEEDSBond proceeds will be used to pay for drainage improvements, land acquisition, water meter updates and other costs associated with the projects.PROFILEEmerald Forest Utility District is located in northwestern Harris County approximately 18 miles from downtown Houston and lies wholly within the exclusive extraterritorial jurisdiction of the City of Houston (Aa3 stable) and within the boundaries of the Cypress-Fairbanks Independent School District (Aa1 stable).METHODOLOGYThe principal methodology used in this rating was US Local Government General Obligation Debt published in January 2021 and available at https://ratings.moodys.com/api/rmc-documents/70015. Alternatively, please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology.REGULATORY DISCLOSUREFor further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found on https://ratings.moodys.com/rating-definitions.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the issuer/deal page for the respective issuer on https://ratings.moodys.com.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://ratings.moodys.com/documents/PBC_1288235.Please see https://ratings.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.Please see the issuer/deal page on https://ratings.moodys.com for additional regulatory disclosures for each credit rating. Catherine Nicolosi Lead Analyst REGIONAL_SOUTHWEST Moody's Investors Service, Inc. 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