Bangkok--6 Jul--Standard & Poor's
Standard & Poor's Ratings Services raised its underlying rating (SPUR) on Arizona City Fire District's general obligation (GO) bonds series 2007 to 'A-' from 'BBB+'. The outlook is stable. The rating upgrade reflects our view of the district's sustained growth in its financial position to very strong levels. The district's financial position has strengthened with five consecutive operating surpluses since fiscal 2006.
The rating additionally reflects our view of the district's good income levels, revenue flexibility, and low overall debt with no additional debt needs for the foreseeable future.
The above strengths are partly offset by our view of the district's limited economic base, coupled with an unemployment rate that exceeds the national average, and volatility in the district's secondary assessed valuation.
The bonds are direct GO bonds of the district and are secured by an ad valorem tax unlimited as to rate or amount.
"We expect that the district will continue to maintain a very strong financial position through budgetary cuts in the wake of AV declines," said Standard & Poor's credit analyst Louis F. Louis.
The Arizona City Fire District encompasses 5.5 square miles within Pinal County, located approximately halfway between Phoenix and Tucson, where interstates 10 and 8 intersect. The current population is over 7,000.
RELATED CRITERIA AND RESEARCH
USPF Criteria: GO Debt, Oct. 12, 2006
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Media Contact:
Edward Sweeney, New York (1) 212-438-6634,
[email protected]
Analyst Contacts:
Louis F Louis, New York (1) 212-438-2054
Sussan Corson, New York (1) 212-438-2014
Neha Vazarkar, Mumbai