Bangkok--22 Apr--Standard & Poor's
Standard & Poor's Ratings Services raised its underlying rating (SPUR) on Boulder Central Area General Improvement District (CAGID), Colo.'s general obligation (GO) bonds two notches to 'AA-' from 'A'. The outlook is stable.
At the same time, Standard & Poor's assigned its 'AA-' long-term rating, and stable outlook, to the district's $8.055 million series 2009 GO refunding bonds.
"We base the upgrade on the SPUR on what we view as good growth in the district's tax base in addition to maintenance of good financial performance," said Standard & Poor's credit analyst Timothy Barrett.
The rating reflects what we see as the district's: 30-block taxing area in the heart of downtown Boulder, Colo. ('AA+/Stable' GO rating); fully developed nature, with high occupancy rates for its commercial property; and limited competition from private parking facilities for district parking operations.
"The stable outlook reflects our expectation that CAGID will maintain sound financial performance and adequate reserves, aided by strong pricing power in its service area," Mr. Barrett added. The outlook also reflects what we see as limited additional capital needs and the single-purpose nature of the district.
Tempering the district rating, in our opinion, is the limited property tax revenue-raising flexibility for operations due to state taxpayer bill of rights restrictions.
Ad valorem taxes on property within CAGID secure the GO bonds; the district has the obligation to levy these taxes for the bonds' repayment. The series 2009 bonds will refund the district's series 1998 GO bonds.
In 1970, CAGID was formed to provide parking and parking-related improvements to downtown Boulder. The district operates nine parking facilities totaling 2,473 spaces and 875 on-street metered spaces. Demand for parking comes primarily from the downtown's mix of national and local retail outlets, specialty shops, and restaurants, as well as financial, legal, health, and media and marketing services. In addition, the district is located within one mile of the University of Colorado's Boulder campus. CAGID is fully developed, with approximately 3.1 million square feet, and occupancy rates have been high in recent years currently standing at 94%.
Related Research
USPF Criteria: "GO Debt," Oct. 12, 2006
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:
Timothy Barrett, New York (1) 212-438-6327
Matthew Reining, San Francisco (1) 415-371-5044
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ [email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]