Bangkok--9 Jul--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA' rating to West Valley City, Utah's series 2009 franchise tax revenue bonds. The outlook is stable.
"The rating reflects the city's broad economic base, with access to employment opportunities throughout the Salt Lake County economy," said Standard & Poor's credit analyst Jen Hansen. "Moreover, the city reports strong 5.4x coverage on maximum annual debt service by actual fiscal 2008 pledged revenues."
Bond proceeds will be used to refund the city's outstanding 1998 lease revenue bonds.
Pledged revenue consists of a municipal energy sales and use tax, which is levied on taxable gas and electricity. The city is currently levying at 6% of the delivered value of taxable gas and electricity, which is the maximum rate for a Utah municipality. The telecommunication license tax is levied on gross receipts for telecommunication services attributed to a municipality. The city is levying at 3.5% of gross receipts, which is also the maximum rate for a Utah municipality.
West Valley City ('AA-' issuer credit rating) encompasses about 35 square miles in northwestern Salt Lake County, immediately southwest of Salt Lake City, the state's capital and economic center. The city's population has increased 12% since 2001 and currently totals approximately 125,000.
RELATED RESEARCH
USPF Criteria: "Special Tax Bonds," June 13, 2007
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Jennifer Hansen, San Francisco (1) 415-371-5035
Misty Newland, San Francisco (1) 415-371-5073