OREANDA-NEWS. S&P: Riverside-Quindaro Bend Levee District, MO 'BBB' 2006 Bond Rating Affirmed; Off Watch; Outlook Stable Chicago S&P Global Ratings affirmed its 'BBB' long-term rating on Riverside-Quindaro Bend Levee District, Mo.'s series 2006 levee district refunding revenue bonds, and removed the rating from CreditWatch with negative implications, where it had been placed on March 31, 2016. The outlook is stable.

We placed the rating on CreditWatch Negative following the discovery of an error in the application of our criteria. The error was in relation to not applying stress tests as required by our Special-Purpose Districts criteria (published on June 14, 2007, on RatingsDirect). At bond issuance and in subsequent reviews, we determined that the inherent flexibilities in the levy allowed the district to pass certain sensitivity analyses without performing the stress tests. After further clarification, it was determined that there are limitations with respect to the levy which may result in the sensitivity analyses not always being passed.

"We affirmed the 'BBB' rating following the application of the stress tests and after considering other revenue flexibilities and additional pledges from the city of Riverside," said S&P Global Ratings credit analyst John Sauter.

Securing the bonds is a levee tax assessed against all landowners in the district in proportion to the benefits conferred on each parcel of property by an improved flood levee.

The district is on the north side of the Missouri River near the Kansas border, about five miles northwest of downtown Kansas City. It encompasses 2,400 acres.

"The stable outlook reflects our anticipation that the district will have limited additional debt needs while maintaining value-to-lien (VTL) ratios at current or better levels," added Mr. Sauter. We do not anticipate any significant change in leading taxpayers or revenues available for debt service within the two-year outlook horizon. The additional debt service reserve pledge from city, along with the district's additional revenue and liquidity sources that could be available for temporary debt service, further support the outlook, and our expectation is that the rating will remain unchanged over the outlook period.

We could lower the rating if there is a loss or extended period of delinquencies by any of the major taxpayers that reduces the DSR or other revenue and liquidity sources, or places added debt pressure on non-delinquent taxpayers.