As U.S. Tribal Govts Enter Bond Markets, Fitch Announces Best Practices for Tribes Seeking Market Access.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 5, 2004 As tribal governments within the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. are increasingly looking to the capital markets for financing to meeting their growing capital needs, Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. recently published a new report highlighting its interdisciplinary approach in analyzing tribe's resources and operational demands. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the rating agency, financing for tribal government is needed to fund governmental needs such as tribal administration buildings The Administration Buildings are a historic site in Boca Raton, Florida, United States. They are located at 2 Camino Real. On June 27, 1985, they were added to the U.S. National Register of Historic Places. , road improvements, water and sewer systems, and housing and health care facilities. Other financing needs include economic development activities such as casinos, hotels, and manufacturing plants. Typically, revenues from various commercial enterprises such as casinos and oil/gas royalties have financed this debt. Other deals have been financed via tax receipts, pledges of particular assets including liens on land off the reservation not held in tribal trust, and federal grants. "An historical track record and adherence to self-imposed policies demonstrated by established governmental structures, significantly benefits tribal credit issuance," says William Streeter, managing director at Fitch Ratings. "Although tribal governance structures vary greatly, basic rules of sound financial management apply to any government seeking a favorable credit review." Native American Indian American Indian or Native American or Amerindian or indigenous American Any member of the various aboriginal peoples of the Western Hemisphere, with the exception of the Eskimos (Inuit) and the Aleuts. tribes are sovereign governments with the right to make their own laws for the benefit of their members, adjudicate adjudicate (  jōō´dikāt´),v legal matters within their borders, and establish their own membership. They are also exempt from many state and federal laws and retain immunity from suit, as sovereign entities. Streeter says, "Limited waivers of sovereign immunity The legal protection that prevents a sovereign state or person from being sued without consent. Sovereign immunity is a judicial doctrine that prevents the government or its political subdivisions, departments, and agencies from being sued without its consent. to permit enforcement of contractual obligations are considered necessary credit factors and are ordinarily expected by investors." The new report includes a table listing rating considerations for tribal financings. Similar to reviews of other sovereign entities, the process typically begins with the transfer of relevant documents and a site visit to the reservation to meet with the tribal leadership. The report "Tribal Governments in the Bond Market" can be found on the Fitch web site at "www.fitchratings.com" by linking to the "Public Finance" sector and clicking on "Criteria Reports." |
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