NEW YORK - Standard & Poor's Rating Services said it raised its underlying rating (SPUR) to A-minus from BBB-plus on North City West School Facilities Financing Authority, Calif.'s outstanding parity special tax revenue bonds.
Additionally, Standard & Poor's assigned its A-minus rating to the authority's series 2005A, 2005B, and 2006C subordinate special tax revenue bonds. The rating action was based on the increased size and development of the district and its escalating property values. The outlook is stable.
"The tax base remains diverse with the 10 leading taxpayers accounting for only 13% of total special taxes collected," Standard & Poor's credit analyst Joon Kang said. "Additionally, the overall value-to-lien is good at 23.6 to 1, with only 2.3% of the special taxes in 2005 coming from parcels with value-to-lien that is less than 5 to 1. We expect the good value-to-lien ratios of the parcels, the limited concentration of special taxpayers, and the high owner-occupancy rate, which offsets concerns about the slim coverage of debt service, to continue."
