Bangkok--20 May--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'A+' rating to North Las Vegas, Nev.'s series 2010A and B limited-tax general obligation (GO) bonds. Standard & Poor's also affirmed its 'A+' underlying rating (SPUR) on the city's outstanding GO bonds. The outlook is stable.
"The ratings reflect our view of the city's very strong reserve levels, with a general fund unreserved fund balance of $39.4 million, or 20.3% of expenditures, as of fiscal 2009, projected at $20.0 million, or 10.4% of expenditures, for fiscal 2010," said Standard & Poor's credit analyst Bryan Moore. "We also recognize the city's strong financial practices and policies, as well as its experienced and proactive management team whose efforts are expected to continue to provide stability to city reserve levels."
According to management, the series 2010A and B bonds will be used to complete a 25-million-gallon-a-day water treatment facility that is currently 60% completed and to make additional improvements to the city's water and wastewater systems. We understand that the city intends to issue series 2010A as Build America Bonds and has elected to receive cash subsidy payments from the U.S. Treasury in an amount equal to 35% of interest payable on the series 2010A bonds.
North Las Vegas encompasses roughly 100 square miles in northern Las Vegas Valley. With a population of 215,022 in 2009, the city is Nevada's fourth largest.
RELATED CRITERIA AND RESEARCH
USPF Criteria: GO Debt, Oct. 12, 2006
USPF Criteria: Standard & Poor's Revises Criteria For Rating Water, Sewer, And Drainage Utility Revenue Bonds, Sept. 15, 2008
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:
Bryan A Moore, San Francisco (1) 415-371-5077
Ian Carroll, San Francisco (1) 415-371-5060