Bangkok--2 Mar--Standard & Poor's
Standard & Poor's Ratings Services said it raised its long-term rating and underlying rating (SPUR) to 'AA' from 'A+' on Teton County Building Corp., Wyo.'s series 2003 revenue bonds, supported by Teton County. Standard & Poor's also raised Teton County's issuer credit rating (ICR) to 'AA+' from 'AA-'. The outlook on the ratings is stable.
"The upgrades reflect our opinion of the county's maintenance of very strong reserve levels," said Standard & Poor's credit analyst Michael Taylor.
In our view, additional credit factors include the county's:
Wealthy economy, encompassing Jackson Hole, which is somewhat dependent on tourism and winter sports;
A very diverse tax base, with assessed value average growth of a good 10.4% a year over the past three years; Sound financial performance, with an entirely unreserved fund balance representing 41.6% of expenditures; and
Very low overall debt burden at less than 0.1% of market value.
Concerns about the county's tourism-centered economy, including sales and use tax revenues and rising unemployment levels, somewhat mitigate these strengths.
Teton County has no general obligation debt but has $6.275 million in lease revenue bonds remaining as of June 30, 2009, secured by the county's general fund pledge. The lease revenue bond rating reflects the county's general creditworthiness and lease payments, which are subject to annual appropriation by the county. Lease-rental payments made by the county directly to the trustee secure the certificates. Teton County Building Corp., a nonprofit corporation created to facilitate county financing under the Wyoming Nonprofit Corporation Act, is the lessor; the county, as lessee, has leased land, the library building, and a public health building from the corporation.
Teton County (population 19,553) is located in northwestern Wyoming and covers 2,873 square miles.
RELATED RESEARCH
USPF Criteria: GO Debt, Oct. 12, 2006
USPF Criteria: Key General Obligation Ratio Credit Ranges — Analysis Vs. Reality, April 2, 2008
USPF Criteria: Appropriation-Backed Obligations, June 13, 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,
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Analyst Contacts:
Michael P Taylor, New York (1) 212-438-1458
Timothy Barrett, New York (1) 212-438-6327
Key Contacts:
Americas Media Relations: (1) 212-438-6667
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Americas Customer Service: (1) 212-438-7280
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