Fitch Rates Matanuska-Susitna Borough, Alaska's $38MM GOs '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 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 'A+' rating to Matanuska-Susitna Borough, AK's $35.7 million general obligation (GO) school 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. , 2007 series A, and $2.3 million GO park refunding bonds, 2007 series B. Fitch also affirms the 'A+' rating on the borough's $148 million outstanding GO bonds. The bonds are expected to sell via negotiation with RBC Capital Markets RBC Capital Markets is the corporate and investment banking division of Royal Bank of Canada ("RBC"). Broker dealers Depending on the jurisdiction, the division uses different broker dealer subsidiaries of RBC:
The 'A+' rating reflects the borough's sound financial position, robust assessed valuation growth, continued economic diversification, and moderate debt levels. These strengths are somewhat offset by a dependence on narrow funding sources for general operations and increasing capital needs given rapid population growth in recent years. The borough, however, maintains a well-managed capital improvement plan, and the moderate debt levels benefit from significant state reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. of school debt service. Matanuska-Susitna Borough is located in south-central Alaska, approximately 40 miles northeast of Anchorage. The borough is the third largest in the state, both by size and population. With an estimated population of 77,000, representing 35% growth since 2000, the borough is the fastest growing region A growing region is an area suited by climate and soil conditions to the cultivation of a certain type of crop. Most crops are cultivated not in one place only, but in several distinct regions in diverse parts of the world. in the state in terms of population, employment, in-migration, and new-home starts. Likewise, assessed valuation continues to post very strong increases, rising by 22% in fiscal 2007 and averaging 20.5% annually since 2001. Substantial development in the borough has been spurred by extensive transportation options, affordable land, and proximity to regional employment centers. The borough has also experienced further growth in its health care, services, and retail sectors and remains Alaska's primary producer of agriculture. Wealth indicators are slightly below state levels but above national averages. Financial operations and management are solid, characterized by sound fiscal policies, high reserve levels, and prudent budget planning. The general fund balance totaled $22 million or a high 27% of expenditures and transfers out for the close of fiscal 2006. Fiscal 2006 operating results improved over previous estimates due to higher investment returns and conservative tax revenue projections. Although tax revenues represent a high 78% of general fund revenues, the borough's ample reserves continue to provide a cushion for any potential revenue instability. The fiscal 2007 budget indicates a $3.2 million fund balance increase due mainly to increased property tax revenue associated with assessed valuation growth. The borough benefits from a well-managed capital improvement plan addressing its rapidly growing capital needs. Despite frequent issuances, the borough's debt levels are moderate. Including the current issues, direct debt is 2.1% of market value, or $1,920 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. . Overall debt is also moderate at 2.4% of market value or $2,139 per capita. Debt service on the 2007 series A bonds qualifies for state reimbursement at between 60% and 70%. Assuming the state meets its full obligatory obligatory /ob·lig·a·to·ry/ (ob-lig´ah-tor?e) obligate. obligatory unavoidable; something that is bound to occur. reimbursements, direct and overall debt levels drop dramatically to a low 0.7% and 1% of market value, or $633 and $852 per capita, respectively. The current offering will refund portions of general obligation school bonds, 1998 series A; 2001 series A; 2004 Series A; 2004 series B; 2005 series A; and general obligation park bonds, 2001 series B for present value savings of about 2.5% of refunded par. The refunded bonds Refunded Bond A bond, originally issued as a regular or revenue bond, that is now secured by a second issue of bonds which are held in an "escrow fund" consisting of U.S. government debt until the first bond issue reaches maturity. were originally issued by the borough for construction of school and park related facilities. 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