Fitch Affirms Laredo Community College Dist. TX's Rev Bonds at 'A'.AUSTIN, Texas -- 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. affirms its 'A' rating on Laredo Community College The Fort McIntosh Campus is located on historic Fort McIntosh at the west end of Washington Street. The campus has many of the original army buildings from the old fort mixed in with modern buildings from the 1940s and 1970s, which now house studios, classrooms, and home to the District, Texas' (the district) outstanding $27.2 million combined fee revenue bonds. The Rating Outlook is Stable. The 'A' rating on the combined fee revenue bonds is based on the district's overall credit characteristics, including adequate debt service coverage by pledged revenues and the small percentage of district revenues pledged to bondholders. The bonds are secured by 25% of tuition charges, a building use fee, and interest earnings on certain district funds, which accounted for about 6.4% of fiscal 2005 operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. . Debt service coverage remains satisfactory, with fiscal 2005 pledged revenues providing 1.9 times (x) coverage of annual debt service (ADS) and 1.6x of maximum annual debt service (MADS). Collection of pledged revenues for fiscal 2006 is projected to provide 2.4x ADS and 2.0x MADS. No additional revenue bond issuance is planned for at least the next four years. Fitch recently affirmed its 'A+' rating to the district's limited tax bonds based on generally favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. financial performance and ample taxing margin, a modest general obligation debt profile and limited borrowing needs, and growing service area and tax base. Credit risks include ongoing susceptibility susceptibility the state of being susceptible. Refers usually to infectious disease but may be to physical factors such as wetting or to psychological factors such as harassment. to state funding levels and below-average rate of debt repayment. After experiencing steady enrollment growth for several years, headcount and contact hours declined for the fall 2005, reportedly reflecting the strength of the local economy. While officials project stable enrollment for the coming school term, further declines in enrollment could pressure financial operations, which is of some concern. However, the demographic profile A demographic or demographic profile is a term used in marketing and broadcasting, to describe a demographic grouping or a market segment. This typically involves age bands (as teenagers do not wish to purchase denture fixant), social class bands (as the rich may want of the south Texas region remains positive, with an increasing number of high school graduates projected over the next several years, which benefits the district. For more information on Laredo Community College District, please see the Fitch Ratings press release dated Aug. 23, 2006, available on the web site at www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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