The Stafford County Economic Development Authority on Tuesday will offer $49.5 million of Series 2008 economic development lease-revenue bonds in a competitive sale.
Proceeds will fund various capital projects and equipment purchases, including the design of a new courthouse, the construction of a library, and the installation of a radio communications system.
Public Financial Management Inc. is financial adviser. McGuireWoods LLP is bond counsel.
Fitch Ratings and Standard & Poor’s assign A-plus ratings to the deal, while Moody’s Investors Service assigns an A2 rating. Fitch affirmed its AA-minus on the county’s $272.7 million of outstanding general obligation bonds and Moody’s affirmed its Aa3 rating on the long-term debt.
The A-plus rating on the lease revenue bonds reflects the “solid legal provisions, the essentiality of the mortgaged projects, and the fact that rent payments, sufficient to meet debt service, are subject to appropriation,” according to a Fitch release. The long-term AA-minus reflects Stafford County’s economic growth, fueled by its location along the Interstate 95 corridor between Washington, D.C., and Richmond, and “good prospects for further development; low unemployment rate; moderate debt burden and manageable capital program; and variable financial results,” Fitch said.
Under the terms of a financing lease, Stafford County will make basic rent payments to the authority, subject to appropriation, equal to debt service.
The essentiality of the financed projects, which are secured by a leasehold mortgage, provides sufficient incentive to appropriate, Fitch said.
