MOODY'S ASSIGNS 'CON. (A)' RATING TO INDIANA TRANSPORTATION FINANCE AUTHORITY REVENUE BONDS
MOODY'S ASSIGNS 'CON. (A)' RATING TO INDIANA
TRANSPORTATION FINANCE AUTHORITY REVENUE BONDS
NEW YORK, Jan. 17 /PRNewswire/ -- Moody's Investors Service today announced it has assigned a "Con. (A)" rating to the $198.935 million Indiana Transportation Finance Authority airport facilities lease revenue bonds to be offered the week of Jan. 27.
Security rests with the credit standing of the state of Indiana. Rental payments to be made by the Indianapolis Airport Authority, fixed at a level sufficient to pay all debt service requirements, are payable solely out of funds appropriated by the Indiana General Assembly.
Bond proceeds will be used to pay part of the cost of a major economic development project, an aircraft maintenance facility at Indianapolis Airport. This contribution is part of a package of incentives provided by the state, the city of Indianapolis and neighboring Hendricks County to induce United Air Lines, Inc. to use the facility.
Low debt level and a record of satisfactory financial operations of the state contribute to bondholder security. Also considered are the limited nature of the state's payment obligation, the use of bond proceeds for a private facility not essential to traditional government operations, the inability of bondholders to affect use of the facility should rental payments not be made (in contrast to lease revenue bonds issued for other Indiana projects), and the potential complications introduced by the ongoing involvement of United, a participant in the cyclical, highly competitive airline industry.
The conditional prefix, expected to remain in place until May 1, 1995, pertains to the need for project availability for use and occupancy, and the start of rental payments by the Airport Authority.
/CONTACT: George Leung, 212-553-0342, or Steven Hochman, 212-553-0338, both of Moody's/ CO: Indiana Transportation Finance Authority ST: Indiana IN: TRN SU: RTG PS-CK -- NY067 -- 1183 01/17/92 17:34 EST