Fitch Affirms Pennsylvania Infrastructure Auth's Rev Bonds at 'AAA'.CHICAGO -- In the course of routine surveillance, 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 the 'AAA' rating on the Pennsylvania Infrastructure Investment Authority's (Pennvest) $35.3 million in outstanding loan pool program revenue bonds (1990 indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. ). The Rating Outlook is Stable. The 'AAA' rating reflects strong projected coverage of 2.5 times (x) maximum annual debt service (MADS) from loan repayments - the primary security source - and approximately $7.5 million in reserves which would allow the bonds to perform, even given loan defaults of over 59% during the remaining six years until final bond maturity. This default tolerance is well in excess of what Fitch would expect in an 'AAA' stress scenario for a pool of this size, credit quality and security. Established in 1988, Pennvest provides loans and grants to Pennsylvania localities and some private entities for drinking water drinking water supply of water available to animals for drinking supplied via nipples, in troughs, dams, ponds and larger natural water sources; an insufficient supply leads to dehydration; it can be the source of infection, e.g. leptospirosis, salmonellosis, or of poisoning, e.g. , wastewater, stormwater, and non-point source pollution control system improvements. The pledged loan pool of 219 borrowers is diversified diversified (di·verˑ·s . Altoona City Authority is the largest borrower, comprising 10.9% of pledged loan principal. The 10 largest borrowers account for 49.5% of the total pledged par outstanding. The loan portfolio is well seasoned as it was funded from Pennvest bond proceeds and commonwealth contributions from 1988 to 1994. The underlying loan security is strong with all loans backed by the borrowers' general obligation or utility system pledges. Fitch conservatively estimates that 57% of the portfolio has investment grade characteristics. There are no delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. or defaulted loans in the pledged portfolio. However, Pennvest has had delinquencies, including one with a permanent loss, in its direct loan pool; these direct loans are not pledged to bondholders. Pennvest has no plans to issue additional bonds under this indenture. Additional information is available at 'www.fitchratings.com'. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP HTTP in full HyperText Transfer Protocol Standard application-level protocol used for exchanging files on the World Wide Web. HTTP runs on top of the TCP/IP protocol. ://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, 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 WEBSITE '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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