Bangkok--28 Oct--Standard & Poor's
Standard & Poor's Ratings Services lowered its long-term rating and underlying rating (SPUR) to 'BBB' from 'A' on Reno, Nev.'s series 2005A, 2005B, and 2005C tax-exempt capital improvement revenue bonds. The outlook is negative.
"The rating reflects our view of a decline in pledged revenues and pledged revenue coverage to below 1x on the maximum annual debt service," said Standard & Poor's credit analyst Bryan Moore.
The ratings also reflect our view of:
- A debt service reserve funded by surety bonds, and
- The cyclicality of pledged revenues, which we believe partially reflects the region's economic concentration in tourism.
The preceding factors are offset in part by our view of:
- Strong annual debt service coverage, which equaled 1.8x in fiscal 2010;
- Strong legal provisions, with an additional bonds test of 1.5x; and
- A large population base.
RELATED CRITERIA AND RESEARCH
USPF Criteria: Special Tax Bonds, June 13, 2007
Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal atwww.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
Media Contact:
Ola Fadahunsi, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Bryan A Moore, San Francisco (1) 415-371-5077
Sussan Corson, New York (1) 212-438-2014