Fitch Rates M-NCPPC Bonds Gtd By Prince George's County, Maryland 'AA+'.WASHINGTON -- 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 an 'AA+' rating to the Maryland-National Capital Park and Planning Commission's (M-NCPPC M-NCPPC Maryland-National Capital Park and Planning Commission , or the Commission) approximately $13.3 million Prince George's County general obligation park acquisition and development refunding bonds refunding bond A bond that is issued for the purpose of retiring an outstanding bond. Issuers refund bond issues to reduce financing costs, eliminate covenants, and alter maturities. See also crossover refunding bonds, prerefunding. , series GG-2. Dated July 15, the bonds are scheduled for bids on July 21. Bond proceeds will be used to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. outstanding series S-2 general obligation bonds for economic savings estimated at 4% of refunded par and no extension of final maturity. Fitch also affirms the 'AA+' rating on $115.3 million of 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 Rating Outlook is Stable. The 'AA+' rating is based on the full faith and credit pledge of the M-NCPPC and the unlimited ad valorem taxing Ad Valorem Tax A tax based on the assessed value of real estate or personal property. In other words ad valorem taxes can be property tax or even duty on imported items. Property ad valorem taxes are the major source of revenues for state and municipal governments. guarantee of Prince George's County, MD. The rating applies to bonds issued by the M-NCPPC for Prince George's County projects only. Additional M-NCPPC credit strengths include its limited programmatic pro·gram·mat·ic adj. 1. Of, relating to, or having a program. 2. Following an overall plan or schedule: a step-by-step, programmatic approach to problem solving. 3. mission and strong financial management, as evidenced by conservative fiscal policies and practices that yield ample fund balances. Debt service is payable from a state-mandated tax of $0.04 and $0.10 per $100 of real and personal property assessed valuation (AV), respectively, which is levied by the county on its share of property lying within the Washington, D.C.-Maryland metropolitan district, encompassing over 90% of total bicounty AV. Budgeted debt service expenditures for fiscal 2006 total 72% of the mandatory minimum tax levy. The M-NCPPC is a state-created bicounty agency that administers a regional park and recreation system serving both Prince George's and Montgomery counties Montgomery County may refer to:
Prince George's County (general obligations rated 'AA+' by Fitch) is part of the Washington, D.C. metropolitan region, and its economy benefits from the presence of many vital U.S. government facilities and the University of Maryland's flagship campus in College Park. Tax base growth continues to accelerate, reflecting both new development and property appreciation. Several major commercial and residential developments are under way in Prince George's, likely providing steady tax revenue growth to the county and M-NCPPC for several years due to Maryland's three-year phase-in of property assessments. Property taxes constitute over 90% of M-NCPPC's total revenue and are remitted by the county on a monthly basis. The commission's financial position is strong, aided by conservative budgeting and management practices. Reserves for the commission's Prince George's County operations are well above its policy floor of maintaining a general fund balance at 3% of spending. The fiscal 2004 general fund balance equaled 37.5% of expenditures, up from 30.7% the prior year due to a tax rate increase. Fiscal 2005 projections through May indicate another strong surplus, led by robust property tax collections and the commission's typically tight spending controls. Balances will be drawn down over time, primarily for capital projects, by agreement with the county to maintain the current tax rate for the next several years. Ample capacity remains to service Prince George's debt within the revenue raised by the state-mandated property tax dedicated to debt service. Any mandatory tax proceeds not used for debt service may be used for operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . After this sale, the commission will have $115.1 million in outstanding Prince George's County debt (net of refunded par), which represents a modest $137 per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. and 0.22% of market value. Overall debt levels, which account for the debt of the county, are moderate at $1,582 per capita and 2.56% of market value. Capital plans for Prince George's projects over the fiscal years 2006-2011 time period total $156 million, with $24 million authorized in fiscal 2006. The commission is planning a $16 million general obligation bond sale later this fiscal year. Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies and 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 this site, at all times. This document will remain on the public site for seven days. |
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