Quantcast
Regional News

Idaho Bond Bank Affirmed Ahead of Sale

The Idaho Bond Bank received an Aa1 rating from Moody's Investors Service ahead of plans on Nov. 28 to price $64.5 million in revenue bonds.

Moody's also affirmed the bond bank's $280 million in outstanding bonds' Aa1 rating and stable outlook, according to a report released Wednesday.

The bonds will be issued in maturities ranging from 2013 to 2018.

The proceeds will be loaned to nine Idaho cities to pay for new water and wastewater projects and to refund previously issued debt, according to the bond bank's preliminary official statement.

The current offering is secured by various pledges of each respective borrower, but consists primarily of net enterprise system revenues.

The bonds are further secured by a pledge of the state's sales tax revenues that will be transferred directly to the trustee for debt service if debt service payments have not been received within five days of the payment date, according to analysts.

The stable rating outlook anticipates continued solid coverage of outstanding debt service by sales tax revenues, and improvement in state sales tax collections amid a continued uneven economic recovery. The primary challenge to the rating, according to analysts, is that the sales tax pledge also backs two school bond guaranty programs on a parity basis.

Seattle-Northwest Securities is the senior manager. The Bank of New York Mellon Trust Co. is the trustee. Skinner Fawcett LLP is acting as bond counsel.

 

JOIN THE DISCUSSION

SEE MORE IN

RELATED TAGS

Idaho ,
Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.

Upcoming Events

Already a subscriber? Log in here
Please note you must now log in with your email address and password.