OREANDA-NEWS. S&P Global Ratings revised the outlook on its 'BBB' underlying rating (SPUR) on Denton County Fresh Water Supply District No. 8-C (FWSD), Texas' general obligation debt to stable from positive.

The rating action reflects S&P Global Ratings' opinion of the more-than-expected debt issuance of the district's overlapping issuers, specifically Frisco Independent School District; this has resulted in an elevated overall debt profile the rating service considers commensurate with the 'BBB' rating level.

At the same time, S&P Global Ratings assigned its 'BBB' long-term rating and stable outlook to the district's $6.455 million series 2016 unlimited-tax utility bonds.

"We do not expect to change the rating during the one-year outlook period. We could raise the rating if substantial tax base growth and debt reduction were to result in significantly decreased debt commensurate with the district's higher rated peers," said S&P Global Ratings credit analyst Alexander Laufer. "We could lower the rating if the district or overlapping issuers were to issue additional debt that outpaces tax base growth, resulting in a materially elevated debt profile."

An unlimited ad valorem tax on all taxable property within the district secures the bonds.

Officials intend to use series 2016 bond proceeds to construct roads.