Bangkok--31 Jul--Standard & Poor's
Standard & Poor's Ratings Services raised its underlying rating (SPUR) on Arrowhead Metropolitan District, Colo.'s outstanding general obligation (GO) debt to 'AA-' from 'A' based on the district's consistently strong fund balances and mostly built-out status. Standard & Poor's also assigned its 'AA-' rating to the district's series 2009 GO refunding and improvement bonds. The outlook is stable.
"The ratings are based on the district's high wealth levels and very strong per capita market value, as well as its limited future capital needs," said Standard & Poor's credit analyst Jen Hansen. "In addition, the district has maintained strong reserves."
Market value is what we consider to be a very strong $3.5 million per capita and has more than doubled to $1.3 billion in 2008 from $615 million in 2006. The area is what we consider to be mature, and management reports that the area is mostly built out and needs little additional infrastructure.
Financial operations are what we consider to be strong. The district reported a $1.3 million general fund balance, or 117% of current expenditures, at year-end 2008.
According to management, bond proceeds will be used to purchase a parking lot and adjacent land that the district plans to continue to operate as a parking lot.
The 1,572-acre Arrowhead Metropolitan District is in Eagle County, just west of Vail, Colo. The district provides water service, street improvements, parks and recreational facilities, cable television relay and transmitting facilities, storm drainage, transportation, and fire protection to district inhabitants.
RELATED RESEARCH
USPF Criteria: "Methodology And Assumptions: Rating Unlimited Property Tax Basic Infrastructure Districts," March 17, 2009
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:
Jennifer Hansen, San Francisco (1) 415-371-5035
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]