Rating Action: Moody’s assigns Baa2 to Montgomery Co. M.U.D. 105, TX’s GOULT bonds; outlook is stableGlobal Credit Research – 23 Feb 2022New York, February 23, 2022 — Moody’s Investors Service has assigned a Baa2 rating to Montgomery County Municipal Utility District 105, TX’s $4.5 million Unlimited Tax Bonds, Series 2022. Moody’s maintains the Baa2 rating on $54.7 million in outstanding parity debt. The outlook is stable.RATINGS RATIONALEThe Baa2 rating reflects the district’s trend of robust full value growth. The rating also incorporates the district’s above average resident income and improving reserves. The rating further reflects the district’s high debt burden, additional near-term borrowing plans and lack of pension or OPEB liabilities.RATING OUTLOOKThe stable outlook reflects the expectation that construction of single-family homes will continue to drive full value (FV) growth over the next couple of years and that reserves will continue to improve. In addition, the stable outlook reflects the expectation that the debt burden will remain high, but steady as additional debt issuances occur in conjunction with FV growth.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING- Materially higher reserves relative to revenue- Moderation of the debt burden- Continued tax base growthFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING- Material increase in the debt burden – Reduction of reserves – Decrease in full value LEGAL SECURITY Principal and interest on the bonds are payable from the proceeds of an annual ad valorem tax, without legal limitation as to rate or amount, levied against all taxable property within the district.USE OF PROCEEDSThe Series 2022 bonds will reimburse developers for various capital improvements to the district’s utility infrastructure.PROFILEMontgomery County MUD 105 is in southern Montgomery County, TX (Aaa stable), roughly 30 miles from Houston (Aa3 stable), and within Conroe Independent School District (Aa1 stable). The district encompasses 738 acres and has an estimated population of 3,000.METHODOLOGYThe principal methodology used in this rating 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 http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.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. LeRoy Ousley Lead Analyst REGIONAL_SOUTHWEST Moody’s Investors Service, Inc. 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