Fitch Rates Montgomery County Rev Auth, MD $11.9MM Rev Bds 'AA'.Business Editors WASHINGTON--(BUSINESS WIRE)--Jan. 9, 2003 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 a 'AA' rating to the Montgomery County Montgomery County may refer to:
MCRA Modern Coral Reef Aquarium MCRA Midwest Cafe Racing Association MCRA Monte Carlo Risk Assessment MCRA Motor Club Rhone Alpes (France) MCRA Michigan Crisis Response Association ) $11,900,000 taxable lease revenue bonds (Montgomery County Conference Center Project), series 2003A scheduled for bids on Jan. 14. Dated Jan. 15, the bonds mature serially Feb. 15, 2004-2023 and are callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. on or after Feb. 15, 2013, beginning at 102% of par. At this time, Fitch Ratings also assigns a 'AA' rating to the MCRA's $5.6 million of outstanding series 1999 lease revenue bonds, which are on parity with the series 2003A bonds. Montgomery County's superior credit standing supports the 'AA' rating. Legal provisions for the lease revenue bonds are sound and lease rental payments are centrally administered within the county finance department. While the lease is subject to annual appropriation of rent to the Montgomery County Revenue Authority (MCRA) by the county council, incentives to appropriate are strong given a state capital contribution equal to more than 50% of the conference center project cost and the county's own significant equity contribution. After retirement of the county debt, the county will own the facility. The MCRA bonds, along with the proceeds of bonds concurrently issued by the Maryland Stadium Authority The Maryland Stadium Authority, MSA, was created in 1986 by an act of the Maryland General Assembly. The initial mission of the public corporation of the state of Maryland was to return the National Football League (NFL) to Baltimore. (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. ), will be used to jointly finance the construction of a 100,000 square-foot conference center in Montgomery County. In addition to borrowed funds, the county is making equity contributions equal to approximately 10% of the $36 million total project cost. The project is anticipated to meet demand for first class meeting space from government agencies, professional associations, and private companies in the surrounding area. The design concept includes a small amphitheater, classrooms, a telecommunications center A facility, normally serving more than one organization or terminal, responsible for transmission, receipt, acceptance, processing, and distribution of incoming and outgoing messages. , and dining facilities. A privately financed and owned Marriott hotel will be physically integrated with the conference center. Financing for the hotel has been approved and funds are to be released upon closing of the public bonds. The facility will be located in North Bethesda near the White Flint White Flint may refer to:
Mass transit refers to municipal or regional public shared transportation, such as buses, streetcars, and ferries, open to all on a station. The site is adjacent to the heavily traveled Rockville Pike and is close to the Capital Beltway and Interstate 270. The land was purchased by MCRA from proceeds of the 1999 bonds. The MSA is responsible for design and construction of the conference center, which the MCRA will own and the county will operate. Marriott Hotel Services, Inc. will manage both the conference center and the hotel under separate agreements with the county and the hotel development group. The agreements allow for substitution of the manager in the event of performance related problems. A 2004 grand opening is planned; there is no capitalized interest Capitalized interest Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time. In the context of project financing, interest that is paid by additional borrowing. on the MCRA bonds. MCRA, which is governed by a five-member board appointed by the county executive with approval from the county council, has financed several successful enterprise operations of the county. MCRA assigns its rights to rental payments from the county to the bond trustee who may re-lease or sell the county's interest in the project if it fails to appropriate. Rent is due 15 days prior to the debt service payment dates of Feb. 15 and Aug. 15. Montgomery County's credit strength is derived from its affluent and diverse economy, a strong financial position, and a moderate debt load that is retired rapidly. The county's general obligation bonds are rated 'AAA'. The county's several lease programs are centrally administered and rental payments are included in the debt service budget. |
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