Portsmouth to Float GOs

Portsmouth expects to sell $12 million of general obligation refunding bonds next Wednesday.

Wachovia and Morgan Keegan & Co. will serve as underwriters and McGuireWoods LLP will serve as bond counsel, according to David P. Rose, senior vice president at Davenport & Co., the financial adviser for the deal.

Fitch Ratings said in a report that it rated the Series 2009D bonds AA-minus.

Portsmouth, located on the Chesapeake Bay, has significant naval and port operations. The Norfolk Naval Shipyard and Naval Hospital employ 13,000 people, about 13% of the city’s population. The global economic downturn has hurt port businesses across the county as U.S. exports and imports decline.

The city has “moderately low” debt levels at $3,069 per capita, Fitch said, and the 2010 budget includes a tax increase and estimates reserves will equal at least 10% of revenues.

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