NEW YORK - Moody's Investors Service has upgraded to Aa2 from A1 the rating of the Parish of East Baton Rouge, La.'s $28.2 million public improvement sales tax revenue refunding bonds, Series ST-2005A.
The upgrade to Aa2 primarily reflects the closure of the lien preventing any additional leveraging of the security, the very strong maximum annual debt service coverage that is expected to remain healthy for the life of the debt, and the parish's large tax base and stable economy, which continues to experience modest growth, adequate financial operations, and projected year over year growth in sales tax collections.
The rating also incorporates a satisfactory debt service reserve requirement at the lesser of the standard three prong test.
