New York, October 06, 2016 -- Moody's Investors Service has confirmed the Aa3 rating on Monroe County, IN's lease revenue bonds, which include the Ad Valorem Property Tax First Mortgage Bonds, Series 2011A, and the Taxable Ad Valorem Property Tax First Mortgage Bonds, Series 2011B. The Aa3 rating is one notch lower than the county's Aa2 general obligation (GO) unlimited tax issuer rating. The notching reflects the lease revenue bonds' legal structure, in which lease payments are subject to abatement risk if the leased properties are unable to be used; the more essential nature of the leased assets, which are facilities used for county operations; and the county's pledge to use its general obligation limited tax (GOLT) authority to fund the lease payments, a pledge which is subject to Indiana's circuit breaker taxing limitations.
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