Bangkok--4 Jan--Standard & Poor's
Standard & Poor's Ratings Services raised its rating two notches to 'A' from 'BBB+' on Prescott Valley, Ariz.'s series 1995 and 1998 sewer collection system roadway repair improvement bonds, phases 1 and 2. The outlook is stable.
"The raised rating reflects the town's continued strong financial performance including consistent maintenance of very strong reserves for several years," said Standard & Poor's credit analyst Paul Dyson. "In our opinion, this level of reserves provides a substantial credit cushion to the general fund revenue declines that the town is currently experiencing."
Prescott Valley is obligated to make bond payments to the extent that assessments remain unpaid and covenants to appropriate cash flow deficiencies from its general fund. The bonds are secured by special assessments levied on parcels within the improvement district. The bonds represent a contingent liability of the town. In the event of a deficiency in the funds collected from the special assessments to make timely debt service payments, the town has covenanted to make a temporary loan from other available funds to the special assessment debt service fund.
RELATED RESEARCH
USPF Criteria: "GO Debt," Oct. 12, 2006
USPF Criteria: "Special-Purpose Districts," June 14, 2007
Complete ratings information is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and 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. Use the Ratings search box located in the left column.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Paul Dyson, San Francisco (1) 415-371-5079
Matthew Reining, San Francisco (1) 415-371-5044
Key Contacts:
Americas Media Relations: (1) 212-438-6667
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[email protected]
Americas Customer Service: (1) 212-438-7280
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