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MOODY'S ASSIGNS AN A1 RATING TO CLARK COUNTY, NEVADA GENERAL OBLIGATION (LIMITED TAX) TRANSPORTATION IMPROVEMENT BONDS DATED JUNE 1, 1992

MOODY'S ASSIGNS AN A1 RATING TO CLARK COUNTY, NEVADA GENERAL OBLIGATION
 (LIMITED TAX) TRANSPORTATION IMPROVEMENT BONDS DATED JUNE 1, 1992
 NEW YORK, May 19 /PRNewswire/ -- Effective May 18, Moody's Investors Service assigned an A1 rating to Clark County's negotiated sale of approximately $250.0 million General Obligation (Limited Tax) Transportation Improvement Bonds (Additionally Secured with Pledged Revenues), scheduled for June 2. Proceeds of the current issuance will be used to finance transportation infrastructure improvements.
 In assigning the upper medium grade rating, Moody's noted that, "the county, which includes the Las Vegas metropolitan area, continues to experience a rapid level of growth and development due to low housing costs, an expanding job market, and favorable climate. While the county has benefited from rapid tax base expansion, the growth has resulted in increasing debt levels and sizable future capital needs. The most substantial, among the various projects planned, is the Master Transportation Plan (MTP).
 The MTP focuses on expanding the existing transportation infrastructure, with the current bond issue financing the first projects. Although the ultimate security for the debt service is ad valorem property taxes, the county has pledged revenues generated through various taxes created to support the MTP. The county's revenue and expenditure assumptions for the funding plan are conservative and if achieved, will enable the debt service to be provided for solely through the pledged revenues. Although the county has historically been dependent on economically vulnerable revenue sources such as the sales tax and gaming revenue tax, it has proven its ability to handle these constraints and strengthen its financial position. However, county officials expect an operating deficit for fiscal 1992, the first one since the early 1980s, primarily due to the ongoing sales tax receipt shortfall.
 By implementing a series of corrective actions and budgeting using conservative growth projections, the county is positioning itself to ensure balanced operations for fiscal 1993. Although the local economy remains substantially dependent on the hotel/casino industry, some diversification is occurring as non-gaming related businesses are relocating to the county. In addition, further casino industry expansion is occurring as three major hotel projects are expected to be completed by 1994, adding approximately 10,500 rooms."
 In conjunction with the current sale, the A1 ratings on the county's outstanding general obligation, limited tax and general obligation, limited tax (additionally secured with pledged revenues) bonds were confirmed. In addition, the A ratings on the county's outstanding local improvement district bonds were confirmed.
 Amount of general obligation debt outstanding (including current offering): $744,110,000.
 -0- 5/19/92
 /CONTACT: Barbara Flickinger, 212-553-7736, or Eric M. Friedland, 212-553-4557, both of Moody's/ CO: Clark County, Nev. ST: Nevada IN: SU: RTG


PS-LR -- NY038 -- 1765 05/19/92 11:31 EDT
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Publication:PR Newswire
Date:May 19, 1992
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