Bangkok--18 May--Standard & Poor's
Standard & Poor's Ratings Services raised its rating on Boulder, Colo.'s general obligation (GO) debt outstanding one notch to 'AAA' from 'AA+'. The outlook is stable.
At the same time, Standard & Poor's assigned its 'AAA' long-term rating, and stable outlook, to Boulder's series 2009 open space acquisition refunding bonds.
"We base the upgrade on what we view as the city's strong economic fundamentals in addition to management's ability to maintain strong financial performance throughout various economic cycles," said Standard & Poor's credit analyst Timothy Barrett.
The rating also reflects what we consider Boulder's strong and diversified economic base; above-average income indicators; strong financial position, including management's proactive steps to reduce expenses given a slowdown in sales tax revenues; strong financial management policies and practices; and low debt levels, with dedicated nonproperty tax revenues for the city's GO bonds outstanding.
The stable outlook reflects what we see as the city's strong maximum annual debt service coverage and limited additional debt issuance to temper concerns about recent pledged revenue fluctuations. The outlook also reflects what Standard & Poor's views as the local and regional economies' general strength, anchored by the University of Colorado-Boulder and above-average income indicators.
Certain city sales and use tax revenues secure the bonds. Boulder's unlimited ad valorem tax pledge provides additional security. Bond proceeds will be used to refund the city's series 1999 open space acquisition refunding bonds outstanding.
Boulder, with a population estimated at 103,650, is 25 miles north of Denver, in Boulder County. University of Colorado (about 29,000 students), the city's leading employer, anchors Boulder's diversified economy. The university also serves as a magnet for technology and research jobs.
RELATED RESEARCH
USPF Criteria: "GO Debt," Oct. 12, 2006
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Timothy Barrett, New York (1) 212-438-6327
Hilary A Sutton, New York 212-438-7093
Key Contacts:
Americas Media Relations: (1) 212-438-6667
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Americas Customer Service: (1) 212-438-7280
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