Moody's Investors Service said it has assigned a MIG 1 rating to the city of Springboro, Ohio's $1.75 million real estate acquisition revenue bond anticipation notes, Eighth (2012) Renewal, and upgraded to Aa1 from Aa2 the rating on the city's long-term general obligation limited tax debt, of which $19.3 million is outstanding.
Debt service on the notes is secured by a pledge of revenues from property sales and the city's 0.5% capital improvements income tax. Along with cash on hand, proceeds of the current notes will retire $2 million in notes that mature on October 25, 2012. The current notes mature in one year and the MIG 1 rating is based on expected market access for the take out refinancing, a history of successful marketing of bonds and notes, sound coverage provided by the pledged income tax revenues, and the credit quality reflected in the city's underlying rating.
The upgrade to the Aa1 long term general obligation limited tax rating reflects the city's moderately-sized and affluent tax base located south of Dayton (general obligation rated Aa2/stable outlook), well-managed financial operations supported by strong reserves, and manageable debt burden supported by rapid amortization of long-term debt.