Latest news with #GeneralObligationBonds
Yahoo
21-05-2025
- Business
- Yahoo
KBRA Assigns A- Rating to Various City of Chicago, IL General Obligation Bonds; Affirms Rating for Parity Bonds; Outlook Remains Negative
NEW YORK, May 21, 2025--(BUSINESS WIRE)--KBRA assigns a long-term rating of A- to the City of Chicago, IL: General Obligation Bonds, Series 2025A; General Obligation Bonds, Series 2025B; General Obligation Bonds, Series 2025C; General Obligation Bonds, Taxable Series 2025D; General Obligation Bonds, Series 2025E; General Obligation Bonds, Series 2025F (Housing and Economic Development Projects); and, General Obligation Bonds, Taxable Series 2025G (Housing and Economic Development Projects). KBRA additionally affirms the long-term rating of A- for the City's outstanding General Obligation Bonds. The rating Outlook remains Stable. Key Credit Considerations The rating actions reflect the following key credit considerations: Credit Positives The City's regional significance reflected in its substantial tax base and large, diverse economic base. Ample available reserve balances supplement the City's solid liquidity position. The funding of a third consecutive advance pension contribution, albeit from a one-time assigned fund balance, is an important and meaningful step towards long-term pension funding stability. Credit Challenges Reliance on non-recurring revenues rather than structural expenditure adjustments to resolve budgetary shortfalls calls into question the City's ongoing ability to meet its exceptionally high pension-driven fixed cost burden and growing personnel and other operating costs. The advance pension contributions made since 2023 to stabilize the NPL and prevent liquidation losses, while credit positive in the long run, risk crowding out other Corporate Fund spending in the short run, unless additional long-term funding sources are identified. Compounding the City's severely underfunded pension status, the possibility of retroactive adjustments and increased future pension benefits exists should the pension systems' Tier 2 benefits fall out of compliance with IRS Safe Harbor Tests. Rating Sensitivities For Upgrade Long-term revenue enhancements and spending reforms that address the City's growing structural budget gap. Dedication of specific revenues (in lieu of one-time assigned fund balance) to achieve actuarial pension funding requirements. Improved debt ratios, reflecting a sustained moderation of borrowing and continued expansion of the resource base. For Downgrade Use of Chicago Skyway and parking meter asset and concession lease reserves to offset budgetary gaps. Failure to adhere to established financial and debt policies. Borrowing by the City for other than capital purposes. To access ratings and relevant documents, click here. Methodologies Public Finance: U.S. Local Government General Obligation Rating Methodology ESG Global Rating Methodology Disclosures A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Only those ratings on securities issued by this Issuer that also are denoted on the Security Ratings tab for this Issuer on as "endorsed" by Kroll Bond Rating Agency Europe Limited into the European Union and/or by Kroll Bond Rating Agency UK Limited into the UK are covered by the disclosures set forth in this press release and the corresponding Information Disclosure Form. No other ratings on issuances by this Issuer have been endorsed into the European Union or the UK, and the disclosures set forth herein and in the corresponding Information Disclosure Form are inapplicable to those ratings and may not be used for regulatory purposes by European Union or UK investors in these securities. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1009548 View source version on Contacts Analytical Contacts Linda Vanderperre, Managing Director (Lead Analyst)+1 Peter Scherer, Senior Director+1 Peter Stettler, Senior Director+1 Douglas Kilcommons, Managing Director (Rating Committee Chair)+1 Business Development Contacts William Baneky, Managing Director+1 James Kissane, Senior Director+1
Yahoo
27-02-2025
- Business
- Yahoo
KBRA Assigns AA+ Rating to the City of New York, NY General Obligation Bonds, Fiscal 2025 Series E&F and Fiscal 2006 Series I, Subseries I-6; Affirms Rating for Outstanding General Obligation Bonds
NEW YORK, February 27, 2025--(BUSINESS WIRE)--KBRA assigns a long-term rating of AA+ to the City of New York, NY (the "City") General Obligation Bonds Fiscal 2025 Series E, Fiscal 2025 Series F, and Fiscal 2006 Series I, Subseries I-6. Concurrently, KBRA affirms the long-term rating of AA+ rating the City's outstanding General Obligation Bonds. The rating Outlook is Stable. The rating assignments and affirmation recognize the City's preeminent role as a domestic and international center of business, culture and tourism, the historic resiliency of its broad and diverse economic base, its elevated, yet manageable debt profile, management's track record of fiscal discipline, and the efficacy of institutionalized procedures in confronting near-term financial challenges. Counterbalancing factors include federal funding uncertainty, ongoing spending pressures that contribute to outyear budgetary imbalances, and a geographic footprint that is increasingly vulnerable to extreme weather events. Key Credit Considerations The rating was assigned because of the following key credit considerations: Credit Positives New York City's role as an international business and cultural center, and its position as the hub of the country's largest metropolitan economy highlight the diversity and resilience of the resource base supporting the Bonds. Institutionalized, long-range financial management and capital planning practices support financial stability. Total reserves, pension funded ratios, and unfunded liabilities have trended positively in recent years, while annual debt service requirements continue to be maintained at below 15 percent of City tax revenues. Credit Challenges The City's currently strong fiscal position and ongoing ability to achieve budgetary balance while maintaining essential quality of life programs and services would be compromised in the event of significant federal funding reductions or changes in federal policy. The Financial Plan does not address the potential for adverse federal action relating to funding declines. Federal immigration reforms have the potential to shrink the City's population and labor market with negative implications for the larger economic outlook despite a potential salutary effect on expenditures. The City's location and topography create exposure to rising sea levels, coastal and inland flooding and extreme heat, the mitigation of which is expected to entail substantial long-term city, state, and federal investment. Rating Sensitivities For Upgrade Maintenance of sound fiscal posture, budgetary flexibility, employment growth and revenue resiliency in the face of prevailing economic, policy, and social headwinds. Adoption of a formalized reserve policy targeting the size of reserves and conditions for deposits and withdrawals Formalization, through incorporation to the City Charter, of the City's policy of limiting debt service to 15% of tax revenues in each year of the financial plan. Trend of reduced or eliminated projected out-year budget gaps. For Downgrade Secular economic decline and/or deterioration in a key economic segment, of sufficient magnitude to challenge budgetary balance. Relaxation of, or less adherence to, well-established policies and procedures. To access ratings and relevant documents, click here. Methodologies Public Finance: U.S. Local Government General Obligation Rating Methodology ESG Global Rating Methodology Disclosures A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1008255 View source version on Contacts Analytical Contacts Linda Vanderperre, Senior Director (Lead Analyst)+1 Peter Scherer, Senior Director+1 Douglas Kilcommons, Managing Director+1 Karen Daly, Senior Managing Director (Rating Committee Chair)+1 Business Development Contacts William Baneky, Managing Director+1 James Kissane, Senior Director+1
Yahoo
06-02-2025
- Health
- Yahoo
City of Shreveport takes steps to improve water quality issues identified by LDH
SHREVEPORT, La. (KTAL/KMSS) – The Louisiana Department of Health outlines the actions the City of Shreveport needs to take to improve the city's drinking water quality. The Sanitary Survey issued in 2021 includes repairs to water storage tanks and emergency generators. The city said it is proactively addressing the deficiencies identified by LDH. The Water Tank Improvement project is currently in progress and is repairing all elevated water towers. The emergency generator for the booster pump station for south Shreveport is awaiting final funding decisions. Shreveport 'game changer' $3.5M FEMA grant for water system upgrade In a statement, the city said, 'The plans and specifications for these critical projects have been developed in coordination with LDH and have received the necessary permits for construction. One of the main challenges in executing these repairs is ensuring the continuous operation of the water system. Water storage tank improvements can only be performed during periods of lower demand, typically in the winter months. City staff have conducted operational testing to determine the impact of taking each tank offline, as these storage tanks are essential for maintaining water pressure and fire protection. Consequently, repairs must be carefully scheduled to minimize disruptions and ensure system reliability. The City of Shreveport remains committed to improving its drinking water infrastructure. More than $10 million has already been allocated to address the deficiencies identified in the 2021 Sanitary Survey. These efforts are in addition to the $40 million in projects included in the 2024 General Obligation Bonds, further demonstrating the City's dedication to enhancing its water system. These issues were identified by LDH in 2021 but do not pose imminent health concerns.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
