Bangkok--12 Jan--Standard & Poor's,
Standard & Poor's Ratings Services has assigned its 'A+' long-term rating to Gypsum, Colo.'s $3.15 million series 2010 certificates of participation (COPs). The outlook is stable.
The rating reflects Standard & Poor's view of the town's:
General credit characteristics as lessee; and
Obligation to budget lease payments, which are subject to annual appropriation.
The town's general creditworthiness reflects, in Standard & Poor's view, its:
Very strong wealth and income indicators,
Strong general fund financial performance, and
Low direct debt levels with no plans for additional debt.
Offsetting rating factors include:
A tourism-centered local economy; and
Revenue base that has some reliance on what we consider volatile sources, with sales taxes comprising about 52% of general fund revenues.
"The stable outlook is supported by the town's strong reserves and track record of strong financial performance, which we expect to continue," said Standard & Poor's credit analyst Le T. Quach. "We expect that sales tax revenues will largely continue to track as budgeted due to the reopening of the town's largest sales tax generator, Eagle County Regional Airport," she added.
Base rental payments by the town under a lease purchase agreement with UMB Bank, as lessor, secure the COPs. The town will use certificate proceeds to finance the acquisition of a golf course and adjacent parcel of land. The leased property includes Gypsum's town hall building. Under the lease purchase agreement, the town has covenanted to budget and appropriate lease rental payments annually through the life of the COPs.
Gypsum (population, 5,278) is a residential community located about 35 miles west of Vail along the Interstate 70 corridor in Eagle County.
RELATED RESEARCH
USPF Criteria: Appropriation-Backed Obligations, June 13, 2007
USPF Criteria: Financial Management Assessment, June 27, 2006
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:
Le T Quach, New York (1) 212-438-5544
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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