Aaa rating affirmed on $131 million of G.O. debt, post-issuance
New York, May 02, 2013 --
Moody's Rating
Issue: General Obligation Public Improvement Bonds, Series
2013; Rating: Aaa; Sale Amount: $12,820,000;
Expected Sale Date: 5-14-2013; Rating Description:
General Obligation
OPINION
Moody's Investors Service has assigned a Aaa rating and stable outlook
to Charlottesville's (VA) $12.8 million General Obligation
Public Improvement Bonds Series 2013. Concurrently, Moody's
has affirmed the Aaa rating on the City's $116 million in outstanding
long-term debt. The bonds are general obligations,
secured by the city's unlimited ad valorem property tax pledge.
SUMMARY RATINGS RATIONALE
The Aaa rating and stable outlook reflect the city's sizable tax base
anchored by the University of Virginia (revenue bonds rated Aaa/stable
outlook), below-average resident wealth profile skewed downward
by the tax-exempt university and affiliated students, carefully
managed financial position with healthy reserve levels, and average
debt burden. Bond proceeds from this issue will finance various
city and school capital projects.
STRENGTHS:
- Economic stability provided by institutional presence of University
of Virginia (Aaa/stable)
- Conservative budget management with comprehensive financial policies
-Sound financial position with adequate financial flexibility
CHALLENGES:
- Below-average socioeconomic indices
WHAT COULD MAKE THE RATING GO DOWN:
-Substantial declines in tax base and wealth levels
- Decline in reserve levels
- Increased debt burden limiting financial flexibility
The principal methodology used in this rating was General Obligation Bonds
Issued by US Local Governments published in April 2013. Please
see the Credit Policy page on www.moodys.com for a copy
of this methodology.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides certain regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Tiphany J Lee
Associate Analyst
Public Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Josellyn Yousef
Asst Vice President - Analyst
Public Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's assigns Aaa rating to City of Charlottesville' (VA) $12.8 million G.O. Public Improvement Bonds Series 2013; outlook is stable