Bangkok--19 Aug--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'SP-1+' rating to the Arizona School District Tax Anticipation Note Financing Program's series 2010 tax anticipation notes (TANs) certificates of participation.
"The rating reflects a strong note structure, including the intercept of pledged taxes by the county treasurer on April 15, which is two-and-a-half months before the end of the fiscal year and three-and-a-half months before note maturity, into a separate repayment fund, and good projected coverage of note debt service by pledged revenues at the segregation date and adequate coverage at the final maturity date," said Standard & Poor's credit analyst Matthew Reining.
Officials will use note proceeds to finance cash flow deficits in certain general funds of the districts.
According to officials, note debt service coverage (based on final adopted budgets) by projected cash balances on the April 15 segregation date is good and estimated to range from 1.35x to 2.60x for the seven participating districts. At final maturity, July 29, 2011, officials project ending cash coverage will range from an adequate 1.02x to a strong 1.95x.
The participating districts are:
Chandler Unified School District No. 80 of Maricopa County
Deer Valley Unified School District No. 97 of Maricopa County
Gilbert Unified School District No. 41 of Maricopa County
Higley Unified School District No. 60 of Maricopa County
Paradise Valley Unified School District No. 69 of Maricopa County
Pendergast Elementary School District No. 92 of Maricopa County
Peoria Unified School District No. 11 of Maricopa County
RELATED CRITERIA AND RESEARCH
USPF Criteria: Short-Term Debt, June 15, 2007
Complete ratings information is available to RatingsDirect subscribers on the Global Credit Portal 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:
Matthew Reining, San Francisco (1) 415-371-5044
Sussan Corson, New York (1) 212-438-2014