Bangkok--1 Jul--Standard & Poor's
Standard & Poor's Ratings Services raised its rating on North Metro Fire Rescue District, Colo.'s general obligation (GO) bonds two notches to 'AA' from 'A+'. At the same time, Standard & Poor's assigned its 'AA' rating to the district's $750,000 series 2009 GO bonds.
"We base the rating on our view of the district's good economic growth and sound financial performance," said Standard & Poor's credit analyst Timothy Barrett.
Other principal factors supporting this rating include our view of the district's participation in the diverse Denver metropolitan area economy; large and diverse property tax base, with strong wealth and income indicators; and solid financial performance.
The stable outlook reflects what Standard & Poor's views as the district's large and diverse tax base that participates in the Denver metropolitan area economy. We expect the district will maintain good financial performance, including reserve levels at least above the district's board approved three months of operational expenses policy. The recent voter-approved tax increase for operations and maintenance should help support the district's good financial position.
In Standard & Poor's opinion, these strengths are offset, in part, by the district's high overall debt burden.
The district's full faith and credit pledge secures the bonds, which are payable from ad valorem taxes without limitation as to rate or amount. Officials will use bond proceeds to complete the construction of two new fire stations, an integrated training facility, and a consolidated fire headquarters as part of the district's 2006 voter-approved bond authorization.
North Metro Fire Rescue District (estimated population 90,000) encompasses 115 square miles and serves the city and county of Broomfield, the city of Northglenn, and portions of unincorporated Adams, Boulder, Jefferson, and Weld counties.
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
David G Hitchcock, New York, (1) 212-438-2022