Fitch Rts Maricopa Co. Public Finance Corp., AZ COPs `AA-'.Business Editors NEW YORK--(BUSINESS WIRE)--Oct. 5, 2000 Fitch assigns its `AA-' rating to the $7,360,000 certificates of participation, series 2000 of Maricopa County Public Finance Corp. The certificates are scheduled to sell on or about Oct. 31, 2000 via competitive bid. Lease payments from Maricopa County, subject to appropriation, will be made to the corporation to repay the certificates. The certificates are dated Oct. 1, 2000 and will mature July 1, 2001-2015. Additionally, the certificates will be subject to optional redemption and mandatory sinking fund sinking fund, sum set apart periodically from the income of a government or a business and allowed to accumulate in order ultimately to pay off a debt. A preferred investment for a sinking fund is the purchase of the government's or firm's bonds that are to be paid redemption, if term bonds are included in the successful bid. Proceeds of the certificates will be utilized to acquire and make improvements to an existing hospital and medical facility to provide public behavioral health Behavioral health was first used in the 1980's to name the combination of the fields mental health and substance abuse. As an example, an organization serving both mental health and substance abuse clients might refer to its practice as behavioral health or services. The `AA-' rating reflects the strong financial position of the county's general fund, essential need of the facility for public health purposes, and sufficient legal structure. The rating also reflects the appropriation risk inherent to lease purchase structures, as the lease payments are a current operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. of the district's general fund. Lease payments will originate from the county's general fund, which has posted significant fund balances in recent years. Maricopa County finances continue to enjoy favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. margins, due in large part to the current prosperous economic environment. The county, through the Maricopa Integrated Health System (MIHS MIHS McDowell Intermediate High School (Pennsylvania, USA) ), is the sole provider of public behavioral health inpatient services inpatient service Managed care A service provided to a hospitalized Pt. Cf Outpatient service. and is experiencing an increase in demand for services that exceeds current capacity. This acquisition will meet current and projected space needs for these purposes. MIHS has also demonstrated improved financial margins, primarily through the operating results of a health care plan. The outlook for this credit and the general obligations of the county, rated `AA' by Fitch, is positive. The certificates of participation are issued by the corporation and are payable from the trust estate which will receive lease purchase payments directly from the county. As part of a lease purchase agreement, the corporation assigns its right, title, and interest to these lease payments to the trustee. The lease expires June 30, 2001, but shall be extended automatically by the county for up to 14 years. The expected source of trust estate revenues are semiannual Semiannual An event that occurs twice in a calendar year. Notes: A bond with semiannual coupons would issue payment once every six months. See also: Annual, Bond, Coupon Bond payments from Maricopa County's general fund. Maricopa County is the population center for the state with an estimated 2.9 million in 1999, up nearly 350,000 residents from a 1995 special census. The economy is primarily comprised of the high technology and light manufacturing, construction and trade, tourism, and government sectors. The latest county unemployment rate available is 2.5%. With the population growth, the demand for public services Public services is a term usually used to mean services provided by government to its citizens, either directly (through the public sector) or by financing private provision of services. , including behavioral health services has increased. Combined with a decline in the number of private entities offering inpatient behavioral health care, the existing county psychiatric center has reached capacity. Therefore, the county opted to purchase an existing facility rather than expanding the current one or developing a new campus. Projected lease payments for the acquired facility are anticipated to be less than the operating lease Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. for the present center. Despite the growing infrastructure and service demands, the strong economic activity, along with prudent management, in the county has provided the revenue base to meet these needs, as well as develop substantial reserves. Preliminary figures for fiscal 2000 anticipate a $157.7 million general fund balance, representing 22.2% of expenditures and transfers. These figures represent an increase from prior fiscal year results of $140.7 million and 20.5%, respectively. Revenues from state shared sales taxes 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. and motor vehicle license taxes are projected to exceed budget expectations. The county enterprise fund, predominantly consisting of MIHS, also is expected to post net income of $15.7 million for fiscal 2000. Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in 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 and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance Markets worldwide. |
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