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SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY $100 MILLION CP 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 10 /PRNewswire/ -- The San Bernardino County Transportation Authority's $100 million sales tax revenue commercial paper notes (limited tax bonds) are rated `F-1+' by Fitch. The notes will be sold by The First Boston Corp. The $230 million in parity `A+' sales tax revenue bonds (limited tax bonds) are affirmed.
 The highest short-term rating reflects the authority's sales tax revenue pledge, expected continued market access, and strong liquidity features. The Industrial Bank of Japan provides liquidity through a line of credit agreement. Fitch rates the authority's sales tax revenue bonds `A+.'
 Proceeds from this initial issue, about $55 million, will be used to defease the 2006 and 2010 maturities of the authority's sales tax revenue bonds (limited tax bonds) series 1992 A. By issuing the notes as taxable, the authority can avoid a yield restriction on the escrow fund earnings and can redeem the refunded debt at par rather than at a premium on the first call date. The authority expects about $5.1 million in present value savings from this refunding, about 9 percent of the refunded bond par amount.
 The commercial paper notes are secured on par with the authority's two outstanding sales tax revenue bond issues. Upon a failed remarketing, notes will be paid from advances made by the bank through a line of credit agreement. The authority expects to redeem the notes with on-hand sales tax revenue when market conditions change, then issue tax- exempt bonds to fund capital projects. Certain events of default, including the authority's failure to reimburse the bank for advances and non-payment of debt service on the bonds, terminate the bank's obligation to make advances.
 Therefore, the notes' rating also reflects the authority's credit quality, including strong debt service coverage, a straightforward and flexible capital plan, and the county's overall economic development. While economic activity in the area has declined in the county and throughout Southern California, county retail trade continues to provide a stable tax base and sound protection for bondholders. Also, the capital plan's flexibility will allow debt service coverage to remain strong.
 -0- 11/10/93
 /CONTACT: Amy S. Doppelt of Fitch, 212-908-0514/


CO: San Bernardino Country Transportation Authority ST: California IN: SU: RTG

CK -- NY061 -- 2759 11/10/93 12:21 EST
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Publication:PR Newswire
Date:Nov 10, 1993
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