Fitch Rates YMCA of Greater New York 2002 Bonds 'BBB+'.Business Editors NEW YORK--(BUSINESS WIRE)--Jan. 14, 2002 Fitch assigns a rating of 'BBB+' to the New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. Industrial Development Agency Civic Facility revenue bonds (YMCA YMCA in full Young Men's Christian Association Nonsectarian, nonpolitical Christian lay movement that aims to develop high standards of Christian character among its members. of Greater 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 Project), series 2002. Fitch also affirms its outstanding rating of 'BBB+' on approximately $25.5 million outstanding New York City Industrial Development Agency Civic Facility revenue bonds (YMCA of Greater New York Project), series 1997. Proceeds of the bonds will be used to fund a portion of the construction of the new McBurney facility, fund a debt service reserve fund and 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. , and pay costs of issuance. The bonds are expected to sell the week of January 21 through negotiation by UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Paine Webber Paine Webber and Company was an American stock brokerage firm that was acquired by the Swiss bank UBS AG in 2000. The company was founded in 1880 in Boston, Massachusetts, by William Alfred Paine and Wallace G. Webber. . The rating is supported by the YMCA of Greater New York's (YMCA) community reputation, increasing membership, consistent operating performance, and strong debt service coverage. The YMCA's community support and reputation has resulted in improving and expanding youth and adult programs. As of 2000 the YMCA has served 399,817 people including 164,055 youths representing growth of approximately 9% and 15%, respectively, since 1998. Management's prudent fiscal policy and growth strategy has resulted in solid operating performance, and strong pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma debt service coverage which has averaged 4.0 times (x) over the last four years and reached a very high 5.3x as of fiscal 2000. Credit concerns include an increasing debt load with the issuance of the series 2002 bonds, the YMCA's ability to raise funds for significant capital needs, and recruitment and retention of staff. The YMCA plans to raise $50 million over the next five years for its growing capital needs that include facility construction and renovation. Also, the YMCA may face operating pressure from rising labor expenses associated with recent difficulty in recruiting and retaining employees. The opening of the new McBurney facility is expected to boost its already strong membership growth. In addition Fitch believes that management will continue to convert strong membership growth into significant program subsidy. Fitch expects that while the YMCA will be challenged by its capital plans over the next few years, its history of successful fundraising should result in minimal pressure on operating surpluses Operating surplus is an accounting concept used in national accounts statistics (such as United Nations System of National Accounts (UNSNA) and in corporate and government accounts. It is also used in macro-economics as a proxy for total pre-tax profit income. , therefore allowing adequate liquidity growth. The YMCA of Greater New York is a not-for-profit, community service organization located in New York, NY which provides residence, health enhancement, community development, child and teen development, camping and international programs. |
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