The preceding credit strengths are somewhat offset, in our opinion, by the district's moderately high overall net debt burden. An unlimited ad valorem tax levied on all taxable property in the MUD secures the bonds. The MUD encompasses 347 acres in southern Williamson and northern Travis counties and is entirely within the Cedar Park extraterritorial jurisdiction. "The stable outlook reflects our opinion that the district's mostly built-out status will limit future growth in the tax base while also making large debt issuances unnecessary," added Ms. Kimzey. As such, we expect the debt level to remain fairly stable within the two-year outlook horizon. Due to these expectations, we don't expect to change the rating within the outlook horizon.
While unlikely given its built-out status, we may consider a higher rating if the district's AV grew significantly and we viewed debt–to-AV ratios as low. Conversely, a drawdown of the district's financial reserves, or if the district were to issue a significant amount of debt that would substantially increase the debt-to-AV ratio, this would likely lead to a downgrade.