Correct: Fitch Upgrs Maryland-National Capital Parks & Planning Commission to 'AA+' from 'AA'.Business Editors (An earlier press release stated in the first paragraph, that in the event of a failed auction, the maximum interest rate permitted for the notes was 14%. The issuer has subsequently revised the financing documents to reflect a 10% maximum rate. The amended press release follows.) Fitch Ratings--New York--July 10, 2002: 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. upgrades the $101.2 million Maryland-National Capital Park and Planning Commission The Maryland-National Capital Park and Planning Commission (M-NCPPC) is bi-county agency that administers parks and planning in Montgomery and Prince George's Counties in Maryland. It was formed in 1927 by the Maryland General Assembly. (M-NCPPC M-NCPPC Maryland-National Capital Park and Planning Commission ), Prince George's County, Maryland
Prince George's County is located in the U.S. state of Maryland located immediately north, east, and south of Washington, D.C. outstanding general obligation (GO) bonds to 'AA+' from 'AA'. Additionally, Fitch Ratings assigns a 'AA+' rating to the $21.2 million M-NCPPC Prince George's County, Maryland, park acquisition and development GO bonds, series AA-2 (Auction Rate Notes). The notes will sell via negotiation on or about July 25, with Legg Mason Founded in 1899, Legg Mason, Inc. (NYSE: LM) is a leading Global Asset Management Firm that serves the institutional, mutual fund and wealth management markets. The firm is headquartered in Baltimore, Maryland, and is located on Lombard and Charles Streets in the Legg Mason Wood Walker, Inc. as manager. The notes shall initially bear interest at the Dutch auction Dutch Auction An auction where the price on an item is lowered until it gets its first bid, and then the item is sold at that price. Notes: The U.S. Treasury (and other countries) uses a Dutch auction when it sells securities. rate with annual sinking fund sinking fund, sum set apart periodically from the income of a government or a business and allowed to accumulate in order ultimately to pay off a debt. A preferred investment for a sinking fund is the purchase of the government's or firm's bonds that are to be paid payments occurring on May 1, 2003-2022. In the event of a failed auction, the notes will convert to the maximum rate via formula calculation (not to exceed the lesser of 10% per year or the maximum rate permitted by law) for the existing auction period. The 'AA+' rating is based on the full faith and credit pledge of the M-NCPPC and the unlimited ad valorem tax Ad Valorem Tax A tax based on the assessed value of real estate or personal property. In other words ad valorem taxes can be property tax or even duty on imported items. Property ad valorem taxes are the major source of revenues for state and municipal governments. guarantee of Prince George's County, MD. The rating applies to bonds issued by the M-NCPPC for Prince George's County projects only. Additional M-NCPPC credit strengths include its limited programmatic mission and strong financial management, as evidenced by conservative fiscal policies and planning and adequate fund balances. Debt service is payable from a state-mandated tax levied by each county on its share of property lying within the Washington-Maryland Metropolitan District (encompassing over 90% of the bi-county total assessed valuation) and actual debt service expenditures remain under 80%, on average, of the mandatory minimum tax levy. Property taxes comprise over 90% of M-NCPPC's total revenue and are remitted by the counties on a monthly basis. The Prince George's County (general obligations rated 'AA' by Fitch) economy benefits from the presence of many vital U.S. government facilities and the University of Maryland's flagship campus in College Park. Efforts to expand and diversify the tax base through linkage of new commercial space to the county's excellent mass transit infrastructure should have a lasting impact, as will new retail projects in the Bowie and Capital Centre areas. The Commission's core capital program has slowed as resources were shifted to the county's 'Park Schools' that combine recreation facilities with the school system's ambitious construction program. Debt levels are low on a direct and overlapping basis and amortization is above average. |
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