NEW YORK - Fitch Ratings said it assigns an AA-plus rating to the Peoria, Ariz., Municipal Development Authority’s $37 million series 2012 revenue bonds, scheduled for a negotiated sale the week of June 27.
Proceeds will be used to fund improvements to the Peoria Sports Complex.
In addition, Fitch said it raised to AA-plus from AA $52.48 million MDA revenue bonds.
Fitch said it affirmed at AA-plus $171.1 million general obligation bonds outstanding.
The rating outlook is stable.
The upgrade reflects the very healthy debt service coverage of the excise tax bonds, although high coverage is expected due to the fact that excise tax revenues are a primary source of operating revenue for the city.
Sound legal provisions further protect bondholders. The rating of excise tax bonds on par with the city's general obligation bonds recognize the city's reliance on the economically sensitive excise tax revenues which account for nearly three-quarter's of operating revenues.