Printer Friendly

SAN BERNARDINO CO. TRANS AUTH (CALIF.) $120 MIL BONDS 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, July 1 /PRNewswire/ -- San Bernardino County Transportation Authority, Calif.'s $120 million Sales Tax Revenue Bonds (Limited Tax Bonds), 1993 Series A are rated `A+' by Fitch. The bonds will be sold through negotiation by a syndicated led by First Boston Corp. during the week of July 6. The $106.2 million outstanding `A+' parity debt is affirmed. The credit trend is stable.
 The authority's credit strength rests in its strong projected debt service coverage, straightforward and flexible capital plan, and the county's overall economic development. While economic activity in the area has declined, county retail trade continues to provide a stable tax base and sound protection for bondholders.
 San Bernardino County has experienced rapid development through 1990, making it part of one of the nation's fastest growing areas. In response, the county is addressing the substantial transportation infrastructure needs its development now requires. Recent economic weakness has not reduced the need for transportation improvements. The authority's capital plan totals $1.29 billion in 1987 dollars, and involves primarily highway and street construction and improvement. The plan is funded largely from sales tax revenue, or from proceeds of bonds secured by the tax, with a small amount of funds coming from the state and developer fees. The building program is flexible, and recently was adjusted downward in response to area economic decline.
 Debt service coverage is strong, even including the authority's total projected bond sales, never dropping below 2.0 times (x) based on reasonable assumptions. Debt service for just the outstanding bonds and this issue is 2.3x based on 1993 revenue. Conservative assumptions, figuring no growth in sales tax revenue, project debt service coverage at a minimum 1.7x.
 Court decisions reached in 1992, while not directly validating this tax, clarified the 1991 Rider v. County of San Diego case, in which a sales tax approved by a majority of voters was ruled invalid. The cases support the San Bernardino tax's validity. Bond counsel has opined that a similar legal challenge to the San Bernardino tax would fail.
 -0- 7/1/93
 /CONTACT: Amy S. Doppelt of Fitch, 212-908-0514/


CO: San Bernardino County Transportation Authority ST: California IN: SU:

MP -- NY094 -- 7875 07/01/93 15:47 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 1, 1993
Words:372
Previous Article:AMAX CALLS SERIES B PREFERRED SHARES; OMITS DIVIDEND ON COMMON
Next Article:RESERVOIRS AT PHILADELPHIA SUBURBAN WATER STILL IN 'GOOD SHAPE' DESPITE HEAT WAVE, DRY MAY AND JUNE


Related Articles
SAN BERNARDINO COUNTY (CALIF.) TRANSIT AUTHORITY BONDS RATED 'A+' -- FITCH FINANCIAL WIRE --
VIRGINIA ELECTRIC $75 MILLION SENIOR DEBT RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
TRANSAMERICA FINANCE $150 MIL. NOTES RATED 'A+' BY FITCH --FITCH FINANCIAL WIRE --
SAN ANTONIO, TEXAS' REFUNDED BONDS RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
OGLETHORPE POWER CORP. (GA.) PCR BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
CALIFORNIA RANS RATED, GO DEBT LOWERED TO 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
ARVADA (COLO.) SALES TAX BONDS RATED 'A+', HIGHWAY BONDS 'A' BY FITCH -- FITCH FINANCIAL WIRE --
OLD DOMINION ELECTRIC CO-OP (VA) REVENUE BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
FITCH REVIEW FINDS THREE CALIF. COUNTY PORTFOLIOS WELL MANAGED -- FITCH FINANCIAL WIRE --
SAN BERNARDINO PUBLIC SAFETY AUTHORITY (CALIF.) 1995 REVENUE BONDS 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters