Fitch Rates Monmouth County Improvement Auth, New Jersey $22.8MM County Guar Revs 'AAA'.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. assigns an 'AAA' rating to the Monmouth County Improvement Authority, New Jersey's (MCIA Noun 1. MCIA - an agency of the United States Marine Corps that provides responsive and broad intelligence support for the worldwide Marine Corps organization Marine Corps Intelligence Activity ) $22,830,000 County Guaranteed Pooled Equipment lease revenue bonds, series 2005. The bonds are scheduled to price via negotiation on or about July 28 with Advest Inc. as lead underwriter Lead underwriter The head of a syndicate of financial firms that are sponsoring an initial public offering of securities or a secondary offering of securities. Could also apply to bond issues. . The bonds mature serially Oct. 1, 2006-2015. Bond proceeds will fund lease financing of capital equipment to municipalities, school districts, and local authorities in the county. At this time, Fitch affirms the 'AAA' ratings on the MCIA's $33 million outstanding county-guaranteed bonds and the county's approximately $355 million outstanding GO bonds. The Rating Outlook is Stable. The 'AAA' rating reflects Monmouth County's solid financial management resulting in continued strong operations and financial flexibility, stable growth in its wealthy tax base, and low direct debt levels with rapid amortization. Monmouth County continues to experience positive employment growth and office vacancy rates well below the state average. Fund balances continued to grow in 2004 due to the county's conservative budget practices, expenditure controls, and healthy flow of revenue driven by a vibrant property tax base. The county's capital plan has expanded but remains affordable, and although primarily debt funded, debt levels should remain moderate given the county's conservative debt policies including rapid amortization rates. The Rating Outlook is Stable. The authority is permitted to issue bonds to provide funds to finance equipment acquisition under a lease arrangement with local governments within the county. Under the current $50 million authorization, the 2005 bonds will provide financing to 22 municipalities and one school district. The top three participants account for 35% of the total 2005 issuance. The proceeds will be used to acquire the local governmental bonds, which are deposited into each local unit's acquisition fund. Moneys are released by the authority, subject to compliance with standard requisition A written demand; a formal request or requirement. The formal demand by one government upon another, or by the governor of one state upon the governor of another state, of the surrender of a fugitive from justice. The taking or seizure of property by government. procedures, and each local governmental unit's lease rental payment represents the applicable portion of debt service on the bonds. Lease payments are general obligations of municipal governments. School district lease payments are subject to annual appropriation and guaranteed by the municipality MUNICIPALITY. The body of officers, taken collectively, belonging to a city, who are appointed to manage its affairs and defend its interests. in which the district is located. Pursuant to state law, municipal and school district payment deficiencies ultimately are guaranteed by the county upon notification by the authority of a debt service fund shortfall. Lease payments are due on March 1 and Sept. 1. Debt service on the bonds is due on April 1 and Oct. 1. The authority must notify a local unit guarantor guarantor n. a person or entity that agrees to be responsible for another's debt or performance under a contract, if the other fails to pay or perform. (See: guarantee) GUARANTOR, contracts. He who makes a guaranty. 2. of a deficiency in the debt service fund on the first business day of the month preceding the month debt service is due. The local guarantor must pay the deficient amount immediately. The authority must notify the county if there is a debt service fund deficiency on the 15th day of the month preceding the month debt service is due. The county is then obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to take all necessary actions to provide funds to make the debt service payment in full. 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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