Printer Friendly

LAREDO, TEXAS $11.8 MILLION CERTIFICATES OF OBLIGATION RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 18 ~PRNewswire~ -- Four certificate of obligation issues of the city of Laredo, Texas totalling $11.8 million are rated 'A' by Fitch. They are: $1 million Combination Tax and Airport Revenue Certificates of Obligation, Series 1992, $1 million Combination Tax and Paving Assessment Revenue Certificates of Obligation, Series 1992A, $3.8 million Combination Tax and Sewer System Revenue Certificates of Obligation, Series 1992A, and $6 million Combination Tax and Waterworks System Certificates of Obligation, Series 1992A. The certificate issues will be sold Nov. 23 by a syndicate led by Rauscher Pierce Refsnes, Inc. Interest on the airport certificates is subject to the alternative minimum tax. The credit trend is stable. The 'A' rating on $69.5 million in outstanding tax-backed debt is affirmed.
 Laredo's economy has grown with the stabilization of the Mexican economy, and the city's future performance is expected to be far less cyclical than in the early to mid 1980's. The area is greatly influenced by its proximity to Mexico and its location at the juncture of several major highway routes serving Mexico and the rest of the U.S. tourism has historically been a major economic force, and more recently, the city has benefited from growth in "twin-plant" projects. Economic growth has continued at a good pace despite the U.S. recession. While the city's economy declined sharply with the peso devaluations throughout 1982 and exhibited vulnerability to fluctuations in the Mexican economy in the past, future performance for both Laredo and Mexico is expected to be more stable. Laredo is likely to benefit from a free trade agreement, though future development is not contingent upon its enactment. Wealth levels are low and unemployment is above average, reflecting an element of migrant laborers living in Laredo in their off-season, and the city's use as a first stop for immigrants before moving elsewhere. Partially offsetting this concern is the city's relatively low cost of living.
 The city's financial performance has been excellent, marked by both annual operating surpluses and strong year-end balances. Laredo benefits from diverse operating revenue sources, including property and sales taxes and charges for services, mostly garbage collection fees and surplus toll bridge revenue. Expenditure growth has been within that of revenue, and the general fund year-end balances have met the city's 15 percent-20 percent of expenditures guideline since fiscal 1989.
 Laredo's debt burden is moderate despite frequent issuance in the last few years. The city will continue to be active in the debt markets, but will not overburden its tax base. The future debt burden is not expected to rise above the affordable level.
 -0- 11~18~92
 ~CONTACT: Amy S. Doppelt of Fitch, 212-908-0514~


CO: City of Laredo ST: Texas IN: SU: RTG

WB -- NY085 -- 2495 11~18~92 15:37 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 18, 1992
Words:463
Previous Article:ARTHRITIS FOUNDATION ANNOUNCES AGREEMENT WITH McNEIL CONSUMER PRODUCTS COMPANY
Next Article:UNITED CHAIRMAN RESPONDS TO BRITISH AIRWAYS' REFUSAL TO OPEN ACCESS TO LONDON'S HEATHROW AIRPORT


Related Articles
LAREDO, TEX.'S TAX-BACKED DEBT RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
LAREDO (TEXAS) TAX-BACKED BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
LAREDO (TEXAS) $7 MILLION GENERAL OBLIGATION BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
WEBB COUNTY, TX GOs RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
/C O R R E C T I O N -- FITCH/(Correction Notice)
WEBB COUNTY, TEXAS $7.5 MILLION CERTIFICATES OF OBLIGATION RATED 'A' BY FITCH - FITCH FINANCIAL WIRE -
American Southwest $77 Million Pass-Thrus Affirmed 'AAA' By Fitch -- Fitch Financial Wire --
Laredo Texas $12 Million General Obligation Bonds/Certificates of Obligation Rated 'A' By Fitch - Fitch Financial Wire -
LTC $100.8M Commercial Mtge Certs 1996-1 Affirmed by Fitch
Laredo TX. $22.5 Million Certificates Rated 'A' By Fitch IBCA - Fitch IBCA Financial Wire -

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters