Standard & Poor's Ratings Services said it raised its long-term rating and underlying rating (SPUR) to B from CC on Reno Redevelopment Agency, Nev.'s senior-lien 2007A (taxable) and 2007B tax increment bonds.

The outlook is stable.

"The rating actions reflect our view of the recently signed settlement agreement providing that the RDA receives a minimum of $2.7 million of annual revenue though fiscal 2018," said Standard & Poor's credit analyst Bryan Moore.

The ratings reflect: the full replenishment of the cash-funded debt service reserve on both series of bonds; the agency's high volatility ratio of 0.92 in fiscal 2013, which indicates sensitivity to assessed value (AV) fluctuations; a relatively small project area that covers 323 acres, or just 0.09% of Reno, and is concentrated in a highly volatile industry; and four consecutive years of AV declines, which will reduce coverage of debt service below 1x after fiscal 2018, when the settlement agreement expires, absent growth in the tax base.

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