LOS ANGELES — Triple-A rated Portland, Ore., is planning to sell $30 million of general obligation bonds on Tuesday in a competitive offering.
Around $22.5 million of the proceeds from the sale will finance various public safety equipment and facility needs. Around $7.6 million will refund the city's outstanding GO emergency facilities bonds from 2004.
The bonds will have maturities in 2015 through 2029.
Moody's Investors Service assigned the bonds its Aaa rating, citing the city's overall strong credit fundamentals, which include its role as a regional center featuring a "broad and resilient economy."
The city's tax base is large compared to many Aaa-rated cities and continues to rebound from moderate declines in the prior downturn, analysts said. However, the city maintains lower reserves compared to many similarly rated peers.
"The city's debt profile is favorable given a low net direct debt burden and rapid amortization," analysts said in the credit report. "Importantly, the rating also incorporates Portland's sizable Moody's adjusted net pension liabilities that is well above norms at the current rating level but is offset by the city's proactive management and a dedicated property tax levy that funds a large share of the city's pension liabilities."
The agency assigns a stable outlook, reflecting an expectation that Portland's economy and tax base will continue to recover from the downturn.
Moody's also anticipates that strong management will act to maintain an adequate financial position.
The city last issued GO bonds in May 2011 in a $25.8 million sale of public safety bonds.
JPMorgan placed the winning bid for that deal, with a true interest cost of 2.9947%.
Hawkins Delafield will serve as bond counsel on next week's deal and Public Financial Management is financial advisor.
