In the course of routine surveillance, Fitch affirms its 'A' rating on Belmont Redevelopment Agency's approximately $11.5 million senior tax allocation refunding bonds, series 1999A and its 'A-' rating on the agency's approximately $7.6 million in subordinated tax allocation bonds, series 1999B. The Rating Outlook is Stable.
The ratings reflect the sound and increased coverage levels offset by concerns regarding the current regional housing correction. Other credit factors include the area's strong economic indicators, the 100% tax collection rate guaranteed by the county's Teeter plan, sound legal provisions, and the area's minimal future capital needs.
The agency's senior lien bonds are secured by tax increment revenue subject only to a deduction for the state-required housing set-aside while the subordinate bonds' lien is subordinate to that of the senior bonds and a pass-through to overlapping education entities.
Fitch issued an exposure draft on July 31, 2008 proposing a recalibration of tax-supported and water/sewer revenue bond ratings which, if adopted, may result in an upward revision of this underlying rating (see Fitch research 'Exposure Draft: Reassessment of the Municipal Ratings Framework').
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Contacts:
Rachel A. Barkley, 212-908-0514, New York
Alan
Gibson, 415-732-7577, San Francisco
or
Media Relations:
Cindy
Stoller, 212-908-0526, New York
