Bangkok--20 Feb--Standard & Poor's
Standard & Poor's Ratings Services raised its rating on Queen Creek Town Improvement District No. 1, Ariz.'s series 2006 improvement bonds to 'BBB' from 'BBB-'. The outlook is stable.
"The upgrade is based on our view of Queen Creek Town, Ariz.'s creditworthiness and covenant to make up any deficiencies in special assessments," said Standard & Poor's credit analyst Sussan Corson.
"We base the stable outlook on our expectation that management will continue to maintain strong general fund balances to offset declines in revenue. The outlook also reflects our expectation that the town's debt burden should remain stable in the near term given its limited immediate debt plans," Ms. Corson added.
Special assessments within the improvement district secure the bonds. Queen Creek's backup pledge to make temporary loans to the special assessment debt service fund in the event special assessment collections are insufficient, in our view, to provide additional security. If the collected special assessments are insufficient, town officials shall, to the extent permitted by law, make a temporary loan to the special debt service payment fund before Dec. 31 and June 30 of each year so that principal and interest can be paid when due on the next succeeding Jan. 1 or July 1.
The rating reflects what we view as Queen Creek's ('A' issuer credit rating) covenant to make up any deficiencies in special assessments from its general fund.
The district, which is zoned primarily for commercial use, encompasses 24 parcels with the three leading property owners, including the town itself, generating 90% of assessments.
Complete ratings information is available to RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; select your preferred country or region, then Ratings in the left navigation bar, followed by Find a Rating.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Sussan Corson, New York (1) 212-438-2014
David G Hitchcock, New York (1) 212-438-2022
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ [email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]