Bangkok--30 Dec--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA-' rating to Utah County, Utah's $6 million series 2010A excise tax revenue bonds, $15.4 million series 2010B taxable excise tax revenue bonds (Build America Bonds, or BABs), and $19.6 million series 2010C taxable excise tax revenue bonds (Recovery Zone Bonds). The outlook is stable.
"The rating is based on the county's strong maximum annual debt service coverage on the bonds of 1.8x, without regard to the receipt of BAB of Recovery Zone bond subsidies, as well as our view that the county's long-term economic health will remain good despite the current recession," said Standard & Poor's credit analyst Paul Dyson.
The bonds are being issued to finance the construction of a new convention center in the county. The series 2010B bonds are being issued as BABs, with the 2010C bonds being issued as Recovery Zone Bonds, both per the American Recovery and Reinvestment Act, and each series will be issued under the direct subsidy structure.
An established, but growing, portion of the Salt Lake City region, Utah County serves a population of 531,000 that has increased at what we consider a moderate 2.8% average annual rate during the five years through 2008. The county has generally outperformed the U.S. as a whole in employment growth, and its unemployment rate has been lower than the national average.
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:
Paul Dyson, San Francisco (1) 415-371-5079
Chris Morgan, San Francisco (1) 415-371-5032