Moody's Investors Service said it has upgraded to Aa2 from Aa3 the rating on Clark County, Nev.'s Metro police facility lease revenue bonds, Series 2009A outstanding in the amount of $174.3 million.
The bonds were each issued by the Industrial Development Authority of Pima County, Ariz., on behalf of Clark County. The bonds are secured by lease payments from Clark County, subject to annual appropriation. Additionally, Moody's maintains a Aa1 GOLT rating and a stable rating outlook on Clark County.
The upgrade of the Series 2009 lease revenue bonds to Aa2 from Aa3 primarily reflects reduced credit risk since project completion that mitigated construction related risks to bondholders.
The rating also incorporates the county's overall strong credit characteristics that include a still large tax base, a satisfactory financial position, and a modest direct debt burden along with a low lease burden.
The upgrade also positively reflects the essentiality of the leased asset for public safety operations, and brings the rating for the Series 2009 bonds in-line with the Aa2 rating on the county's other essential, fixed asset lease revenue bonds.
