Fitch Rates Colorado Springs' (CO) Utilities Systems VRD 'AA/F1+'.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 -- 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. assigns a rating of 'AA/F1+' to the City of Colorado Springs, Colorado The City of Colorado Springs is the second most populous city (after Denver) in the state of Colorado and the 48th most populous city in the United States.[4] The city is the county seat of El Paso County. , $60,625,000 Variable Rate Demand Utilities System Subordinate Lien Improvement and Refunding Revenue Bonds, Series 2006A. Fitch Ratings also affirms the 'AA' long-term rating on the City of Colorado Springs, Colorado Utilities System's (Springs Utilities) $1.4 billion senior and subordinate lien bonds. The Rating Outlook is Stable. The long-term 'AA' rating on the bonds is based on the pledge of Springs Utilities' net revenues (see below). This pledge is subordinate to the Spring Utilities' pledge of a prior lien on such revenues to certain outstanding senior lien senior lien n. the first security interest (lien or claim) placed upon property at a time before other liens, which are called "junior" liens. (See: mortgage, deed of trust, lien, UCC-1) bonds. The short-term 'F1+' rating on the bonds is based on the liquidity support provided by Dexia Credit Local, acting through its New York Branch, in the form of a standby bond purchase agreement (SBPA SBPA Simple Branch Prediction Analysis SBPA Scottish Beer and Pub Association (UK) SBPA School of Business and Public Administration SBPA School-Based Performance Award SBPA School-Based Performance Awards ). Fitch's short-term rating on the bonds will expire upon the earlier of August 24, 2016, the stated expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. of the SBPA, unless such date is extended, or upon any prior termination of the SBPA. The SBPA provides for the payment of the purchase price of tendered bonds during the weekly, monthly and quarterly rate modes in the event that remarketing proceeds are insufficient following an optional or mandatory tender of the bonds. Initially the SBPA will cover the principal amount of the bonds, plus interest equivalent to 39 days calculated at a maximum rate of 12%, based on a year of 365 days. However, following the first interest payment date on the first business day of October 2006, the interest coverage will be reduced to 35 days calculated on the same basis. J.P. Morgan Securities Inc. is the underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. and remarketing agent for the bonds. The bonds are expected to be available for delivery on or about August 24, 2006. The bonds will be issued in the weekly rate mode, but may be converted to a monthly, quarterly, semi-annual, annual, five year, auction or fixed rate of interest. While bonds bear interest at the weekly, monthly and quarterly rates, interest is payable on the first business day of each month, beginning the first business day of October, 2006. During the weekly rate mode, bondholders have the right to tender their bonds on any business day, following seven days' notice to the tender agent and the remarketing agent. During the monthly and quarterly rate modes, bondholders have the option to tender their bonds on each interest rate adjustment date, following compliance with notice procedures specified in the bond ordinance A law, statute, or regulation enacted by a Municipal Corporation. An ordinance is a law passed by a municipal government. A municipality, such as a city, town, village, or borough, is a political subdivision of a state within which a municipal corporation has been . Bonds are subject to a mandatory tender upon any conversion of interest rate modes, and upon the expiration, termination or substitution of the liquidity facility. The bonds are also subject to mandatory 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 redemption and optional redemption pursuant to the terms of the bond ordinance. The proceeds of the bonds will be used to finance a number of general capital improvements to the City's utilities system. Regarding the long-term rating, Springs Utilities is one of Fitch's highest rated utility systems. The 'AA' rating is reflective of the utility's diverse revenue stream, well developed management practices and policies and a strong and consistent financial profile. Additional credit support derives from a diversified customer base and competitive utility rates. Credit concerns include the utility system's large capital expenditures program which will significantly increase its debt burden over the next ten years. An essential component of Springs Utilities' long-term rating is the utility enacting planned rate increase in a timely manner to maintain its financial profile. Fitch is also monitoring the system's need for additional power and water supply. For more information on the long-term rating, see Fitch's credit report which will be available on Fitch's website the week of August 7, 2006 at www.fitchratings.com. Springs Utilities is a combined utility system serving the City of Colorado Springs Colorado Springs, city (1990 pop. 281,140), seat of El Paso co., central Colo., on Monument and Fountain creeks, at the foot of Pikes Peak; inc. 1886. It is a year-round resort and a booming military, technological, and commercial city. and surrounding suburban residential areas. Revenues consist of a mix of electric (44%), gas (30%), water (12%), wastewater (6%), and other miscellaneous areas (8%). 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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