NEW YORK - Moody's Investors Service has assigned an A1 rating to the city of Portland, Ore.'s River District urban renewal and redevelopment bonds, 2012 Series A through C in the combined amounts of $73.7 million.
At this time, Moody's also upgrades to A1 from A2 the River District urban renewal project area's parity debt outstanding in the amount of $9.2 million, post-refunding.
The bonds are secured by a first lien pledge of tax increment revenues derived from the River District project area. Bond proceeds will repay outstanding lines of credit and refund certain maturities of the outstanding River District urban renewal and redevelopment bonds 2003 Series A.
The upgrade to A1 primarily reflects the project area's favorable credit characteristics that include a large and still growing tax base encompassing a portion of downtown.
Peak debt service coverage is strong and expected to remain ample following anticipated future debt issuance, and legal provisions are satisfactory.
The rating also incorporates the city's strong administration of urban renewal activities that includes managing the complexities of the Oregon property tax system.