Fitch Rates Dayton-Montgomery County Port Authority, OH Bond Fund 'BBB+'.CHICAGO -- 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 'BBB+' rating to Dayton-Montgomery County Port Authority, OH's $1.5 million development revenue bonds (Dayton Regional Bond Fund), series 2006B (Clopay Corporation Project). The 2006B bonds, which mature on Nov. 15, 2021, are being offered by Robert W. Baird Robert Wilson Baird (born April 1, 1883) helped found the financial services firm that bears his name and led it for more than 40 years. Baird’s father was a professor of Greek literature at Northwestern University in Evanston, Illinois, where Baird grew up. & Co. Inc. the week of Sept. 21. Fitch also affirms the 'BBB+' rating on the authority's three outstanding bond fund development revenue bonds totaling $9.4 million. The Rating Outlook is Stable. The 'BBB+' rating reflects the sound structure of the bond fund's program reserve requirements Reserve Requirements Requirements regarding the amount of funds that banks must hold in reserve against deposits made by their customers. This money must be in the bank's vaults or at the closest Federal Reserve Bank. and loan underwriting criteria. Bonds issued under the trust 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. are backed by its own primary reserve, which is sized at 10% and funded with cash or provided though a Letter of Credit (LOC LOC - lines of code ). If this is exhausted, bonds are further secured by program reserves, and then by a pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. share of the other primary reserves within the indenture. With this issue, total primary reserves equal $1.09 million. There is also $1.5 million in additional reserves dedicated to the series 2004B bonds. Program reserves, which total $7.5 million, consist of $5 million in grants from the authority and the state, as well as a $2.5 million irrevocable LOC from National City Bank that expires July 1, 2010, subject to extension; the program reserve LOC can be increased to $5 million at the authority's option. The authority is expected to maintain aggregate primary, program, and additional reserves at 100% of total outstanding bonds until the bond fund has at least five participants, after which it is anticipated that reserves will be leveraged, but with the objective of maintaining the 'BBB+' rating on the bond fund. With this issue (the program's fourth), reserves total 114.9%. The authority's loan underwriting criteria considers purpose of the financing, the borrower's financial strength, management expertise, loan security, and collateral. The bond fund was established under a trust indenture dated July 1, 2004 to promote economic development in the Dayton-Montgomery County area by loaning revenue bond proceeds to small- and medium-sized businesses. The authority can also enter into cooperative agreements to make loans in other counties throughout the state. Series 2006B proceeds will be used to finance a portion of an 867,000 square foot manufacturing facility for the Clopay Corporation, a garage door manufacturing business, located in Troy, Ohio Troy is a city in Miami County, Ohio, United States. The population was 21,999 at the 2000 census. It is the county seat of Miami CountyGR6 Troy was one of the cities impacted by severe flooding in the Great Dayton Flood of 1913. . The 2006B bonds will be secured by loan repayments and a first mortgage on the project shared pro rata with $12.8 million of other project debt. The bonds will be further secured by the primary and program reserves mentioned above. 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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