OREANDA-NEWS. S&P Global Ratings revised the outlook on its 'AA-' long-term rating and underlying rating (SPUR) on Kyle, Texas' general obligation (GO) debt to positive from stable. At the same time, S&P Global Ratings assigned its 'AA-' rating to the city's series 2016 GO refunding bonds, and affirmed its 'AA-' long-term rating and SPUR on the city's GO debt. "The outlook revision reflects our opinion of the city's economic expansion and property tax base growth, which has resulted in improved wealth indicators, particularly market value per capita," said S&P Global Ratings Credit analyst Alexander Laufer. A limited ad valorem tax levy on all taxable property within the city secures the bonds. Given the city's ad valorem tax levy of 58 cents per $100 of assessed value (AV), the rating service believes there is significant tax flexibility well below the maximum allowable tax rate of $2.50 per $100 of AV. S&P Global Ratings rates the bonds under its GO criteria because it does not differentiate between the city's limited - and unlimited-tax pledges, due to its tax rate flexibility, very strong liquidity, and high investment-grade debt. S&P Global Ratings understand officials intend to use series 2016 proceeds to refund some existing debt for savings.