Fitch Ratings last week upgraded United Nations Development Corp. to A from A-minus, citing higher than forecast debt service coverage levels and long-term lease renewals by the U.N. The upgrade affects $124.2 million of outstanding bonds.
The report also cited as a strength the UNDC’s continuing ability to obtain terrorism insurance and recent and planned renovations. Credit risks include the absence of a lien on properties and the potential for the U.N. to assert sovereign immunity.
The UNDC is a public benefit corporation that was created by the state of New York to develop offices, housing, and other facilities for U.N. personnel, organizations, and missions in special district that includes the headquarters at 42nd Street in Manhattan and its immediate surroundings. The UNDC is governed by a 15-member board appointed by the state governor and mayor of New York City.
Moody’s Investors Service gave an A3 to the corporation’s last issue, in 2004.