Bangkok--22 Feb--Standard & Poor's
Standard & Poor's Rating Services has raised its underlying rating (SPUR) on Albuquerque, N.M.'s refuse removal and disposal revenue bonds to 'AA' from 'AA-', reflecting a history of strong debt service coverage. The outlook is stable.
Additional rating factors include:
Albuquerque's manageable capital improvement plan,
Limited competition to the city's solid waste department for these services,
Long-term landfill capacity, and
Relatively low rates with a strong rate collection mechanism.
"We expect that the city's service area economy and waste flow trends will continue to grow, contributing to good coverage and liquidity levels," said Standard & Poor's credit analyst Edward McGlade. "We also expect that the limited competitive environment and manageable capital plan should lend to further stability of the credit," he added.
Net revenues of the city's refuse removal and disposal system secure the bonds.
By ordinance, Albuquerque provides exclusive solid waste collection and disposal services to all households and most commercial enterprises. Residential customers are charged monthly on a combined water, sewer, and refuse bill. The current household monthly rate is $11.72, still below the national and regional averages. The city's Cerro Colorado landfill site has a very long lifetime capacity estimated at 40-50 years, assuming the current level of operations, and meets or exceeds all federal and state regulations.
RELATED RESEARCH
USPF Criteria: Solid Waste System Financings, June 15, 2007
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Edward R McGlade, New York (1) 212-438-2061
Kate Choban, Dallas (1) 214-871-1420
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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