Rating Action: Moody's upgrades Maverick County, TX's issuer rating to A2; assigns A2 to Ser. 2022 GOLTsGlobal Credit Research - 01 Sep 2022New York, September 01, 2022 -- Moody's Investors Service has upgraded Maverick County, TX's issuer rating to A2 from A3. The issuer rating represents Moody's assessment of the county's hypothetical general obligation unlimited tax (GOULT) pledge. Concurrently, Moody's has assigned an A2 rating to the county's $8 million Certificates of Obligation, Series 2022. Post-sale, the county has approximately $47.6 million in debt outstanding.RATINGS RATIONALEThe upgrade of the issuer rating to A2 reflects the county's significantly improved financial position bolstered by prudent fiscal management and budgeting practices. The county benefits from a moderately sized and steadily growing tax base, however, the rating is constrained by its limited local economy with below average resident incomes, elevated poverty and high unemployment. Finally, the rating incorporates the county's manageable debt and pension liabilities.The A2 general obligation limited tax (GOLT) rating is the same as the A2 issuer rating, reflecting the county's ample taxing headroom which offsets the limitation under the property tax caps, lack of full faith and credit pledge, and inability to override the statutory cap.RATING OUTLOOKMoody's does not typically assign outlooks to local government issuers with this amount of debt outstanding.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS- Significant economic expansion, evidenced by improved resident incomes, poverty rates, and unemployment- Sustained trend of operating surpluses resulting in higher reservesFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS- Trend of operating deficits, deteriorating reserves- Significant increase in debt burdenLEGAL SECURITYThe certificates of obligation are payable from an annual ad valorem tax levied against all taxable property in the county, within the limits prescribed by law.USE OF PROCEEDSProceeds from the certificates of obligation will be used to finance various improvements to public infrastructure throughout the county, including roads and utility system improvements as well as the renovation of county buildings.PROFILEMaverick County, TX is located in southwest Texas along the US-Mexico Border, approximately 140 miles southwest of San Antonio (Aaa stable). The city of Eagle Pass (A1) is the county seat and largest city within the county. The county has a population of roughly 60,000.METHODOLOGYThe principal methodology used in these ratings 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 DISCLOSURESFor 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. Jeffrey Norred Lead Analyst REGIONAL_SOUTHWEST Moody's Investors Service, Inc. 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