Fitch Rates Maryland Stadium Authority's $73.5MM 2007 VRDBs '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. has assigned an 'AA/F1+' rating to the Maryland Stadium Authority's (MSA (Metropolitan Service Area) An urban area with at least 50,000 people plus surrounding counties. There are 306 MSAs and 428 RSAs (rural service areas) in the U.S. MSAs and RSAs are used to allocate cellular licenses. ) $73,500,000 sports facilities See:
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. , football stadium issue, series 2007. The 'AA' long-term rating reflects the credit quality of the MSA and the State of Maryland's (the state) pledge of legislative appropriations. The 'F1+' short-term rating is based on the 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 ) issued by Dexia Credit Local. The state's strong credit characteristics and the MSA's important role in the state support the long-term rating. The state's 'AAA' rating and Stable Outlook reflect its wealthy, diversified economy, sound financial operations, and policies of keeping debt within affordability limits. The current bonds are lease obligations of the state, subject to annual legislative appropriations; the MSA's leasehold interest is also pledged. Provisions of the master lease between the authority and the State of Maryland are sound. Since its establishment in 1986, the MSA has become an integral state agency, taking on a wide array of stadium, convention and cultural facility projects statewide. The current issue will refund the MSA's outstanding sports facilities lease revenue bonds, series 1996. The SBPA provides for the payment of the purchase price of tendered bonds during the weekly rate mode in the event the proceeds of a remarketing of the bonds following a tender are insufficient to pay the purchase price. The SBPA is sized to cover 35 days of interest calculated at the maximum rate of 10% per annum Per annum Yearly. , based on a 365-day year. The short-term rating will expire on the earlier of: Feb. 8, 2012, the 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 any prior termination of the SBPA, in accordance with its terms. The remarketing agent for the bonds is Goldman, Sachs & Co. The bonds are expected to be delivered on or about Feb. 8, 2007. The bonds may be converted to an auction rate or fixed interest rate mode. While bonds bear interest in the weekly rate mode, interest is payable on the first calendar day of each month. Holders have the option to tender their bonds for purchase with prior notice while the bonds bear interest in the weekly rate mode. The bonds are subject to mandatory tender: (i) on interest mode conversion dates; (ii) on the fifth business day preceding the expiration or termination of the SBPA; (iii) upon SBPA substitution, unless there is rating confirmation that the short-term rating assigned to the bonds will not be changed as a result of the substitution; and (iv) upon certain events of default under the SBPA. The bonds are also subject to optional and mandatory redemption. The state's economy is diverse, and has benefited from proximity to the nation's capital. The moderate, steady employment growth of recent years continued through much of 2006; December 2006 employment rose 1.5% year over year, compared to 1.3% nationwide. Maryland is one of the wealthiest states, with 2005 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. personal income of $41,996, ranking it fourth among the states. Nonetheless, more recent personal income growth has fallen behind national figures; third quarter personal income grew 5.5%, compared to 6.7% nationally. A healthy economy led in recent years to strong state revenue collections and rising fund balances. Fiscal 2006 revenues rose 7.3% over the prior year, to $12.4 billion, due in particular to strong personal and corporate income tax growth, up 10.5%. Fiscal 2007 revenue growth has moderated, with the state now expecting revenues to rise 4%, to $12.9 billion, down slightly from earlier forecasts, largely on a reduced outlook for corporate income and sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. collections. Nonetheless, the state expects to end the year with a revenue stabilization account balance of $1.4 billion, or 11% of revenues, well above the 5% statutory minimum. The state expects fiscal 2008 revenues to continue modest growth of 4.5%, reflecting in part the slowing real estate market's impact on capital gains. The proposed spending plan for fiscal 2008 anticipates only moderate general fund spending growth of 3.6%, with large growth in education commitments being offset by smaller spending increases or reductions elsewhere. Nonetheless, spending needs outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, revenue collections. The state balances the fiscal 2008 budget by relying on a projected $247 million fiscal 2007 ending fund balance and a draw on the revenue stabilization fund Stabilization fund may refer to:
Maryland's debt levels remain moderate, and the state has a longstanding commitment to strong debt management. Net tax-supported debt currently equals approximately $6.9 billion, about 2.9% of 2005 personal income. General obligation and transportation bonds, about 92% of the total, are constitutionally required to mature within 15 years, ensuring rapid amortization of 78% within 10 years. 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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