กรุงเทพฯ--1 ก.ค.--Standard & Poor'
Standard & Poor's Ratings Services raised its underlying rating (SPUR) to 'AA-' from 'A+' on the South Metro Fire Rescue Finance Corp., Colo.'s certificates of participation (COPs), issued for the South Metro Fire Rescue District. The upgrade reflects a history of positive general fund surpluses, despite some recent economic pressure, contributing to a very strong unreserved general fund balance.
The rating reflects the district's pledge of lease payments to the corporation, subject to annual appropriation, for use of its administrative building and three fire stations. The rating also reflects the district's participation in the greater-Denver metropolitan economy; large, diverse property tax base, the district's primary revenue driver; and very strong financial position.
In Standard & Poor's opinion, the credit strengths are partly offset by some concentration of commercial uses in the tax base and expected declines in assessed value (AV) beginning in 2012.
"The stable outlook reflects our expectation of continued positive financial performance and reserves, as management implements some cost-saving initiatives to prepare for some potential declines in tax revenues over the next two years," said Standard & Poor's credit analyst Stephen Infranco.
Located in the southeastern Denver metropolitan area, the district serves a 71-square-mile area mostly in southern Arapahoe County and a smaller part in northern Douglas County. The district has no existing general obligation (GO) debt, and we consider overall net debt, including lease-backed debt, low, at only 103 per capita. No additional GO debt is planned.
RELATED CRITERIA AND RESEARCH
USPF Criteria: Methodology And Assumptions: Rating Unlimited Property Tax Basic Infrastructure Districts, March 17, 2009
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:
Stephen Infranco, New York (1) 212-438-2025
Matthew Reining, San Francisco (1) 415-371-5044