Fitch Rates Hawaii County, HI's $317MM GO Bonds 'A+'.SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- Fitch rates Hawaii County, HI, $119.1 million general obligation bonds, 2007 series A, B, and C 'A+', and assigns an 'A+' rating to $198.3 million in outstanding parity bonds Parity Bond Two or more bond issues with equal rights to bond payments. Notes: Also referred to as "part passu" or "pari passu" bonds, these types of fixed-income securities are commonly issued by municipalities as a way to gather finance capital. . The new issue will be sold on or about Jan. 8, 2007 by A. G. Edwards A.G. Edwards, Inc. (NYSE:AGE) is a financial services holding company; its principal wholly owned subsidiary is A.G. Edwards & Sons, Inc., which operates as a full-service securities broker-dealer in the United States and Europe. . The Rating Outlook for all bonds is Stable. The rating reflects the strong attraction driving the county's tourism-based economy and sound growth along with a strong financial position and low debt burden. These strengths are balanced against the vulnerability inherent to tourism-based economies as well as the county's shorter history as a strong tourist draw than neighboring neigh·bor n. 1. One who lives near or next to another. 2. A person, place, or thing adjacent to or located near another. 3. A fellow human. 4. Used as a form of familiar address. v. islands. Also, Fitch believes the recent dramatic rise in property values presents a potential vulnerability to loss, particularly if nationwide real estate conditions deteriorate de·te·ri·o·rate v. 1. To grow worse in function or condition. 2. To weaken or disintegrate. . Fitch notes strong management practices such as multi-year financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against and a proactive effort to begin to fund retiree health care costs. Hawaii County's economic strength derives from the island's natural beauty and solid development by private sector interests. All tourism indicators show strong gains, including visitor count, hotel room availability, rates, and occupancy, and average length of stay. Total employment on the island has risen an average 3.1% per year from 1995-2005, and unemployment levels show near full employment. Nonetheless, the job base is dominated by tourism-related sectors, with construction also a key area, indicative of future growth. Taxable value has risen a remarkable 14.5% per year since fiscal 2001. The county prudently expects growth to slow, and Fitch believes that this extraordinary rise presents some vulnerability to loss should the local or national real estate climate deteriorate. The county is aggressively working to diversify its economy, focusing on agribusiness agribusiness Agriculture operated by business; specifically, that part of a modern national economy devoted to the production, processing, and distribution of food and fibre products and byproducts. and specialty products as well as scientific research and development. The county's financial operations are marked by high year-end reserves, with operations fueled by rising property tax revenue. Expenditures show sizable gains as well, driven by the area's economic development, market-driven salary increases, and rising pension costs. The fiscal 2005 general fund balance rose to $24.0 million, a sound 10.9% of spending. Unaudited results for fiscal 2006 show a very strong year with a sizable fund balance increase. Fitch views the rising and sound fund balance levels as prudent given the economic vulnerability. Like all counties in the state, Hawaii County is constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. somewhat by statewide bargaining with labor groups, as well as state management of pensions and other post employment benefits. The county's revenue basis consists largely of property taxes and state-shared hotel taxes. The county's debt burden is low, the result of the sizable state role in infrastructure financing and the county's rapid amortization. Debt ratios likely will rise as the county continues to address its capital plan, but will remain below average. 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. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion