Moody's Investors Service said it has upgraded to A1 from A2 rating on approximately $157 million of Sports & Exhibition Authority of Pittsburgh and Allegheny County, Pa., bonds secured by the Allegheny Regional Asset District's (RAD) sales tax allocation, and $10 million of RAD-secured bonds issued by the Allegheny County Industrial Development Authority.
Moody's assigned an A1 rating to the authority's $25 million Series 2014 guaranteed revenue bonds. The bonds are secured by a sales tax allocation from the RAD.
Proceeds of the current issue will be used to fund upgrades to Heinz Field, which the authority owns and leases to the Pittsburgh Steelers.
The upgrades include the addition of approximately 3,000 seats, new bathrooms and concession stands, and a second scoreboard.
The A1 rating on the Sports & Exhibition Authority's 2014 guaranteed revenue bonds reflects the security of the RAD's pledge to use its allocated share of countywide sales taxes to cover debt service on the bonds.
The upgrade reflects a multi-year trend of growth in the pledged sales tax, which is charged on a broad range of items and services in a large, diverse, and improving economy. Sales taxes in Allegheny County have grown faster and been less volatile than nationwide sales taxes through the downturn and recovery.
