Quantcast
News

Sabine Creek Series 2003, Texas, Downgraded to Baa1 by Moody's

Moody's Investors Service said it has removed from review and downgraded to Baa1 from A3 two separately secured debt issues of the North Texas Municipal Water District reflecting a change in the credit profile of the participant city: Sabine Creek Wastewater Interceptor System revenue bonds, Series 2003 and water storage contract revenue bonds (city of Royse City project), Series 2001.

The downgrade to Baa1 affects approximately $2.6 million in outstanding contract revenue debt.

The Sabine Creek Wastewater Interceptor System revenue bonds, Series 2003 are special obligations of the district and secured by a first lien on and pledge of all revenues or payments to be received by the district from the combined waterworks and sanitary sewer system of the participants and any additional participants.

Currently, the city of Royse City is the sole participant city. The water storage contract revenue bonds (city of Royse City project), Series 2001 are special obligations of the district and secured by a first lien on and pledge of all revenues or payments received by the district from the combined waterworks and sewer system revenues of the Royse City.

The downgrade reflects the weakened credit profile of Royse City Waterworks and Sanitary Sewer System, evidenced by its elevated debt ratio and narrow reserve level. The strong legal provisions included in the authorizing resolution and contract for each separate debt issue were also factored into each rating.

JOIN THE DISCUSSION

SEE MORE IN

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.