12.09.2016, 20:56
S&P: Coffee County, TN Rating Outlook Revised To Positive On Improved Budgetary Performance And Flexibility Likelihood
OREANDA-NEWS. S&P Global Ratings revised its outlook to positive from stable, and affirmed its 'A+' long-term and underlying rating (SPUR) on Coffee County, Tenn.'s existing general obligation (GO) debt. At the same time, S&P Global Ratings assigned its 'A+' long-term rating to the county's series 2016 GO refunding bonds. In addition, S&P Global Ratings affirmed its 'A+' long-term and SPUR rating on the Coffee County Public Building Authority's existing debt."The outlook revision reflects our view that there is a one-in-three chance the rating could be raised within our outlook horizon should the county sustain its strong budgetary performance and flexibility," said S&P Global Ratings credit analyst Oscar Padilla. A pledge of the county's full faith and credit and resources, along with an agreement to levy ad valorem property taxes without limitation on the rate or amount, secure the bonds. Proceeds will be used to refund a portion of the county's debt for debt service savings. The county's same unlimited ad valorem pledge - excluding the territorial limits of the cities of Manchester and Tullahoma - secures its series 2015B, 2015C, 2014, and 2013 rural school bonds as well as the Coffee County Public Building Authority's series Z-6-A and Z-7-A bonds. The series Z-6-A and Z-7-A were issued on behalf of the county and are direct obligation of the county which along with the county's series 2014 and 2013 bonds are additionally payable from and secured by the sales tax funds (the county's 0.75% increase in the local-option sales tax). The sales tax funds pledge (for series 2013 and 2014 rural schools bonds) is subject to a prior pledge of said sales tax funds for the repayment of the Z-6-A Loan Agreement, dated Dec. 10, 2008, and the Z-7-A Loan Agreement, dated July 15, 2009, between the county and the authority. S&P Global Ratings rates all of the bonds based of the county's unlimited tax GO pledge.
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