Bangkok--24 Apr--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AAA' rating to Phoenix Civic Improvement Corp., Ariz.'s series 2009A junior-lien water system revenue bonds and series 2009B junior-lien water system revenue refunding bonds. Standard & Poor's also affirmed its 'AAA' rating and underlying rating (SPUR) on Phoenix Civic Improvement Corp.'s outstanding junior-lien water system revenue bonds. The outlook is stable.
"The ratings are based on our view of the city's sound financial performance, with annual debt service coverage of 2.37x in fiscal 2008 based on net revenues calculated on a budgetary basis, and high liquidity, with cash and investments equal to approximately 146 days of operating expenses as of fiscal year-end June 30, 2008," said Standard & Poor's credit analyst Matthew Reining. "Phoenix has what we consider large and diverse tax base and strong employment indicators, and the city's population has expanded 23% this decade." The city's general obligation rating is 'AAA'.
Proceeds from the series 2009A issuance will be used to retire series 2007A and 2007B water revenue bond anticipation notes and finance water improvements in the city's capital improvement plan. Proceeds from the series 2009B bonds will be used to refund the city's series 1998 junior-lien water system revenue refunding bonds.
Located in Maricopa County, Phoenix is Arizona's capital and the nation's fifth-largest city. The city provides water throughout Phoenix and a small portion of surrounding areas to slightly fewer than 404,000 accounts.
RELATED RESEARCH
"Standard & Poor's Revises Criteria For Rating Water, Sewer, And Drainage Utility Revenue Bonds," Sept. 15, 2008
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Matthew Reining, San Francisco (1) 415-371-5044
David G Hitchcock, New York (1) 212-438-2022