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Fitch Ratings has assigned an ‘AA-‘ rating to Pinal County (the county), Arizona’s following obligations:
–$50.5 million pledged revenue obligations, series 2014;
–$40.8 million pledged revenue refunding obligations, series 2014.
The bonds are scheduled for a negotiated sale the week of Dec. 1, subject to market conditions. Proceeds of the revenue obligations will finance public safety and road improvements. The revenue refunding bond proceeds will refund the county’s series 2006 revenue bonds for interest savings.
Additionally, Fitch affirms the county’s implied unlimited tax general obligation (GO) rating at ‘AA-‘ and the county’s $54.6 million in outstanding certificates of participation (COPs) series 2004 at ‘A+’.
The Rating Outlook is Stable.
SECURITY
The pledged revenue obligations are payable from a second lien pledge of the county general excise tax revenues in favor of the county’s Third Loan Repayment Agreement and 2010 obligations, a third lien pledge of net state shared revenues in favor of the county’s Second and Third Loan Repayment Agreements and 2010 obligations, and a first lien pledge of vehicle license tax (VLT) revenues. The COPs carry a pledge of lease payments from the county to the trustee, subject to annual appropriation by the county.
KEY RATING DRIVERS
IMPROVED PLEDGED REVENUE TRENDS: Pledged revenues reflect a third year of growth, following four years of recessionary decline; the gains were led by strong county-wide excise tax collections, and more recently, recovery of state shared revenues.
