Laserfiche WebLink
9/24/2014 <br />Fitch Ratings I Press Release <br />F1itchRatings <br />Tagging Info <br />Fitch Affirms Indian River County, FL's Spring Training Revs at 'AA+'; Outlook <br />Stable Ratings Endorsement Policy <br />24 Sep 2014 3:31 PM (EDT) <br />Fitch Ratings -New York -24 September 2014: Fitch Ratings has affirmed the following ratings on Indian River <br />County, Florida (the county): <br />—$5.9 million spring training facility revenue bonds, series 2001 at'AA+'; <br />—$26 million limited general obligation (LTGO) bonds, series 2006 at 'A-'. <br />In addition, Fitch affirms the 'AAA implied unlimited tax general obligation (ULTGO) rating on the county. <br />The Rating Outlook for all bonds is Stable. <br />SECURITY <br />The spring training facility revenue bonds are limited obligations of the county, secured bya first lien on a <br />statutory annual distribution of funds from the State of Florida general revenue fund for new or retained <br />professional sports facilities, and proceeds from the fourth -cent tourist development tax (TDT) levied by the <br />county and 86% of the local government half -cent sales tax distributed to the county by the state. The lien on the <br />TDT and half -cent sales taxis automatically released as of April 1, 2021 (the final maturity date of the bonds is <br />April 1, 2031). The bonds are additionallysecured bya cash -funded reserve equal to maximum annual debt <br />service (MADS). <br />The LTGO bonds are limited obligations of the county, secured bythe levy of ad valorem taxes not to exceed 0.5 <br />mills on all taxable property in the county. The bonds are not secured bya reserve fund. <br />KEY RATING DRIVERS <br />STRONG SPRING TRAINING COVERAGE: The 'AA+' rating reflects the high credit qualityderived from the <br />combination of revenue streams pledged to bondholders. Coverage of MADS from all pledged revenues is in <br />excess of 6x, and subsequent to the release of the TDT and sales tax in 2021, pledged revenues will be <br />comprised solely of payments from the general revenue fund of the State of Florida, whose general obligation <br />(GO) rating is 'AAA with a Stable Outlook by Fitch. <br />AMPLE FINANCIAL RESOURCES: Unrestricted general fund reserves remain ample despite the use of fund <br />balance to pay down debt in fiscals 2012 and 2013. The countys fiscal policy prudently prohibits the use of <br />reserves to fund recurring spending, which should help preserve a high level of financial cushion going <br />forward. <br />FAVORABLE DEBT METRICS: Fitch expects the county's overall debt burden will remain very low and the cost of <br />servicing debt affordable. Outstanding debt is repaid in an aggressive manner, and additional borrowing is not <br />presently contemplated. <br />NOTABLE ECONOMIC PRESSURES: While the presence of a wealthier retiree population lends some stability <br />to the local economic base, pressures remain as property values remain well below peak levels, employment <br />opportunities are somewhat narrow and concentrated in lower wage jobs, and the countys rate of joblessness <br />is persistently above that of the state. <br />https://wnw.fitchratings.comicreditdesk/press releases/detail.cfm?print=l&pr_id=881294 <br />13 <br />1/4 <br />