Fitch Affirms `AA+' Rating On NYC TFA Bonds.Business Editors NEW YORK--(BUSINESS WIRE)--Oct. 20, 2000 In conjunction with the upcoming sale, the program rating on the New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. Transitional Finance Authority's future tax secured bonds is affirmed at `AA+' by Fitch. The rating applies to the $5.965 billion outstanding parity bonds and $425 million future tax secured bonds fiscal 2001 series A bonds to be offered on or about Oct. 24 by a syndicate led by Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. . The rating incorporates criteria relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc both structured and municipal financings. The Transitional Finance Authority (TFA TFA Teach For America TFA Thyroid Foundation of America TFA Trifluoroacetic Acid TFA Trans Fatty Acid TFA Two Factor Authentication (computer security authentication) TFA Texas Forensic Association TFA Total Fatty Acids ) was established by New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State legislation as a bankruptcy remote A company within a corporate group is said to be bankruptcy remote when the solvency of that company does not affect any other company in the group, particularly any holding company or subsidiary company of the bankruptcy remote vehicle. funding vehicle for the City of New York. The future tax secured bonds are issued by the TFA and secured by future collections of personal income tax (PIT), with additional support from sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. revenues if necessary. Revenues from the PIT flow directly from the state comptroller The power of the Knesset to supervise and review government policies and operations is exercised mainly through the state comptroller (Hebrew: מבקר המדינה to the TFA. The city receives residual revenues only after TFA bondholders have been paid. The bonds are secured by an additional revenue stream (sales tax revenues subordinate to outstanding Municipal Assistance Corporation bonds) in the event debt service coverage falls below a statutory minimum. The Fitch rating reflects the bankruptcy remote, statutorily defined nature of the issuer; the bond structure involving a first perfected security interest in revenues which are not subject to appropriation; statutory covenants prohibiting action that would impair bondholders; New York state as collection agent and a statutorily defined minimum debt service coverage. Within this construct the existence of two separately levied cash flow streams provide strong coverage by estimated fiscal 2000 pledged revenues of 6.79 times (x) maximum allowable debt service. This coverage is projected to decline slightly over the following two fiscal years, reflecting personal income tax rate reductions from the state rebate program and the repeal of the non-resident income tax. Recent developments include the state legislature in June increasing the debt-incurring capacity from $7.5 billion to $11.5 billion or just under the $12 billion maximum parity debt allowed under the indenture. Additionally, the legislation provides for an increase in the percentage of allowable variable rate debt from 10% to 20%. These actions have no rating impact as the mentioned coverage levels are very high and already assume full issuance of the $12 billion allowed under the indenture at a high 9% interest rate. Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance markets worldwide. |
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