Rating Action: Moody's assigns Baa2 to Willow Creek Farms MUD, TX's Series 2021 GOULT bonds; outlook is stableGlobal Credit Research - 03 Feb 2021New York, February 03, 2021 -- Moody's Investors Service has assigned a Baa2 rating to Willow Creek Farms Municipal Utility District, TX's $1.1 million Unlimited Tax Bonds, Series 2021 and $1.5 million Unlimited Tax Park Bonds, Series 2021. Moody's maintains the Baa2 rating on the district's outstanding general obligation unlimited tax (GOULT) debt. The outlook is stable.RATINGS RATIONALEThe Baa2 rating reflects the district's moderately sized and growing tax base, above average resident wealth indices, and satisfactory reserves. The rating also incorporates the district's elevated debt burden and slow principal amortization, which weigh against no additional borrowing plans over the next 12 months and lack pension or other post-employment benefit (OPEB) liabilities.The coronavirus pandemic is not a key driver for this rating action and we do not see any material immediate coronavirus related credit risks for the district given satisfactory financial reserves and its reliance on property taxes and fees for essential services, which have been resilient to economic volatility thus far.RATING OUTLOOKThe stable outlook reflects our expectation that the tax base will remain steady, the district will maintain financial reserve levels that are in line with peers, and the debt burden will slowly moderate yet remain elevated compared to peers.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS- Material moderation of the debt burden- Significant tax base growth- Trend of surplus financial operations resulting in materially higher reserves relative to budgetFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS- Continued reduction of financial reserves- Increased debt burden- Contraction of the tax baseLEGAL SECURITYThe Series 2021 unlimited tax bonds and Series 2021 unlimited tax park bonds are payable from an annual ad valorem tax levied against all taxable property within the district without legal limitation as to rate or amount.USE OF PROCEEDSThe Series 2021 unlimited tax bonds will be used to reimburse developers for various water, storm water, and drainage improvements. The Series 2021 unlimited tax park bonds will fund capital improvements to the district's parks.PROFILEWillow Creek Farms MUD is in Waller County, TX and Fort Bend County, TX (Aa1 stable), roughly 35 miles west of Houston (Aa3 stable). The district lies within the boundaries of Katy Independent School District (Aa1 stable) and Lamar Consolidated Independent School District (Aa2 stable). The district encompasses 575 acres and provides water, wastewater, and drainage services to an estimated population of 3,665.METHODOLOGYThe principal methodology used in these ratings was US Local Government General Obligation Debt published in January 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBM_1260094. Alternatively, please see the Rating Methodologies page on www.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 at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.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 ratings tab on the issuer/entity page for the respective issuer on www.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://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1243406.Please see www.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 ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Nathan Phelps Lead Analyst Regional PFG Dallas Moody's Investors Service, Inc. 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