Jefferson County, AL Series 2018A And B General Obligation Refunding Warrants Rated #AA-#; Outlook Is Stable

Stocks and Financial Services Press Releases Thursday May 17, 2018 09:19
NEW YORK--17 May--S&P Global Ratings

NEW YORK (S&P Global Ratings) May 16, 2018--S&P Global Ratings has assigned its 'AA-' rating to Jefferson County, Ala.'s series 2018A general obligation (GO) refunding warrants and series 2018B GO refunding warrants (delayed delivery). The outlook is stable. The rating reflects the application of our criteria "Issue Credit Ratings Linked To U.S. Public Finance Obligors' Creditworthiness" (published Jan. 22, 2018, on RatingsDirect). We understand management will use the series 2018A warrant proceeds to refinance portions of the county's series 2003A and 2004A GO warrants, along with redeeming all of the existing series 2006 public building authority (PBA) lease revenue warrants, for debt service savings. The series 2018A warrants will also remove the series 2006 PBA warrants, which held a payment agreement between Ambac and the county (signed in 2012). The series 2018B warrant proceeds will refinance the county's series 2013A and 2013C GO warrants, also for debt service savings. "We believe the refunding of the series 2006 PBA warrants reflects the county's efforts to fully own and support its debt obligations and that by refunding the warrants with a full faith and credit pledge, it further reflects the county's strengthened commitment to its debt going forward," said S&P Global Ratings credit analyst Jim Tchou. Once the series 2018A transaction closes, we will withdraw our 'CCC' rating on the series 2006 PBA lease revenue warrants, supported by the county. For more information on this rating, please see the report published May 31, 2017. On Dec. 3, 2013, Jefferson County officially emerged from bankruptcy following the bankruptcy court's approval of the county's Chapter 9 Plan of Adjustment. The county originally filed for protection from its creditors under Chapter 9 of the U.S. Bankruptcy Code on Nov. 9, 2011. The stable outlook reflects our opinion that the county will maintain its very strong budgetary flexibility and liquidity, supported by strong management. In addition, we believe the county's participation in the Birmingham-Hoover metropolitan statistical area provides additional rating stability. Therefore, we do not expect to change the rating during the two-year outlook period. We could raise the rating if the county significantly improves its debt profile by reducing carrying charges and improving its amortization schedule, in addition to demonstrating its ability to manage its debt service costs and addressing deferred capital projects while continuing to balance operations. We could lower the rating if the county's financial performance deteriorates due to structural imbalance, leading to a significant decline in reserves.


Latest Press Release

Thai 2018 CG Score Hits Record Listed Firms Emphasizes More on Stakeholders

The 2018 Corporate Governance Report of Thai Listed Companies (CGR), conducted by the Thai Institute of Directors (IOD) with support from the Stock Exchange of Thailand (SET), showed a 'very good' result and marked a historical high at 81%. The robust...

Sonic Interfreight Pcl. Advances Its Business Potential with an Eye on Growth To Be Leader in Integrated Logistics and Supply Chain Management in ASEAN

Sonic Interfreight Pcl. (SONIC), a leading regional provider of integrated freight and logistics services, is ready to be traded in the Market of Alternative Investment (MIA) for the first time on October 19 with full confidence of positive investors'...

Bangkok Bank reports nine-month net profit of Baht 27,229 million

The Thai economy continued to grow on the back of strong exports and buoyant domestic demand. In spite of the risks from the US trade policies and retaliatory measures of trading partners, exports continued to expand given diversified export...

Siam Commercial Bank reported Baht 10.5 billion net profit for the third quarter of 2018 and Baht 33.0 billion for the first nine months of 2018

Siam Commercial Bank and its subsidiaries announced total operating income of Baht 104.4 billion, a 2.5% yoy increase, for the first nine months of 2018. This positive income growth was achieved despite the digital transaction fee waiver. Operating...

Mastercard Appoints Aileen Chew as the New Head of Market Development

Today Mastercard announced the appointment of Ms. Aileen Chew as Head of Market Development, Thailand and Myanmar. In her new role, Ms. Chew will be responsible for the expansion of cashless payments in Thailand and Myanmar, overseeing engagement with...

Related Topics