Bangkok--29 Sep--Standard & Poor's
Standard & Poor's Ratings Services raised its rating to 'A+' from 'A-' on the $6 million series 2008 lease revenue bonds issued by the Northwest College Building Authority, Wyo., on behalf of the Northwest Community College District. The outlook is stable.
"The rating change primarily reflects our view of the State of Wyoming's ('AA+/Stable' issuer credit rating) ongoing operating support, at about 49% of budget in fiscal 2009; and continued dedicated revenue streams to pay debt service, with the additional ability (although not a pledge) to pay debt service from other unrestricted income including property tax revenue," said Standard & Poor's credit analyst Carlotta Mills.
The bonds are a limited obligation of the authority and are secured by lease payments made by the district. District lease payments are subject to annual appropriation. There is also a debt service reserve fund (10% of par) that is funded by bond proceeds at closing. The bonds are for 25 years and have level debt service, with maximum annual debt service at $523,000 in year 25 and average debt service of around $400,000. Bond proceeds funded the construction of a 76-bed residence hall. The district has no other outstanding debt, and plans to issue no further debt in the near future.
The stable outlook reflects our expectation of continued stable demand and balanced operating results. Additionally, we expect the college to manage expected drops in tax and appropriation revenue. The rating also reflects our expectation of continued diversity of funds available for debt service.
RELATED RESEARCH
USPF Criteria: "Higher Education," June 19, 2007
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Carlotta R Mills, San Francisco (1) 415-371-5020
Paul Dyson, San Francisco (1) 415-371-5079
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Americas Media Relations: (1) 212-438-6667
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