Clark County, Nev., on Monday received an Aa1 rating affirmation and a stable outlook from Moody’s Investors Service as it plans to refund $75.9 million of general obligation limited-tax bonds on May 30.
The rating affirmation covers $2.7 billion of the county’s rated parity debt, along with the Aa2 and Aa3 ratings on the county’s lease revenue bonds outstanding in the combined amount of $370.3 million.
The bonds are secured by the county’s full-faith-and-credit pledge, subject to Nevada’s constitutional and statutory limitations on overlapping levy rates for ad valorem taxes. They are additionally secured by a pledge of net revenues and other unrestricted resources of the Southern Nevada Water Authority.
The bonds are being issued through the county’s Bond Bank, and proceeds will refund certain maturities of the SNWA’s outstanding Series 2001 and 2002 GO bonds.
The Aa1 rating primarily reflects the county’s favorable long-term credit characteristics, which include a still-large tax base and a narrowed but still satisfactory financial position despite recent revenue pressures, according to the report.
Revenue pressures have been offset, in part, by expenditure adjustments implemented by management, analysts said.
The county’s net-direct debt burden remains modest, according to the report.