Bangkok--9 Nov--Standard & Poor's
Standard & Poor's Ratings Services lowered its long-term rating and underlying rating (SPUR) to 'CC' from 'BB' on Reno Redevelopment Agency, Nev.'s senior-lien 2007A (taxable) and 2007B tax increment bonds. Standard & Poor's also lowered its SPUR to 'CC' from 'BB+' on the agency's series 1998F superior-lien tax increment bonds. The outlook is developing.
"The rating actions reflect our view of declines in the agency's assessed value, which have caused annual debt service coverage to fall below 1x in fiscal 2012," said Standard & Poor's credit analyst Bryan Moore. "The downgrade further reflects the shortfall in pledged revenue, and the receiving of new information regarding the amount and use of the agency's debt service reserve to cover a September 2011 debt service payment."
The outlook is developing due to our view of uncertainty related to the attorney general's recent opinion on the methodology for the calculation of taxes due to a redevelopment agency.
RELATED CRITERIA AND RESEARCH
USPF Criteria: Special-Purpose Districts, June 14, 2007
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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