Fitch Places Five U.S. Retail/Commercial Center Sales Tax Bonds on Rating Watch Evolving
I-470 & 350 Transportation Development District (MO):
--$11.3 million outstanding transportation sales tax refunding and improvement revenue bonds, series 2007, currently rated 'A-'.
Unified Government of Wyandotte County/Kansas City (KS):
--$122 million subordinate lien capital appreciation series 2010B bonds (redevelopment project area B), currently rated 'A-'.
Olive Boulevard Transportation Development District (MO):
--$2.96 million outstanding transportation sales tax and special assessment revenue bonds, series 2005, currently rated 'BBB+'.
Manchester/Ballas Community Improvement District (MO):
--$8.9 million sales tax revenue bonds, series 2009, currently rated 'BBB'.
Gravois Bluffs Transportation Development District (MO):
--$15.5 million transportation sales tax revenue bonds, series 2007, currently rated 'BBB'.
RATING SENSITIVITIES
The Rating Watch Evolving signals the ratings could be upgraded, affirmed or downgraded with possible rating migration below investment grade following a review of both structural factors and risks associated with single-site or limited retail/commercial center operations.
CREDIT PROFILE
Fitch is reviewing its ratings on debt secured by sales taxes generated from highly concentrated retail or commercial center operations. The rated bonds mentioned above reflect the totality of Fitch's portfolio potentially subject to rating transition.
The ratings will continue to reflect a blend of public finance and commercial mortgage-backed securities (CMBS) criteria. As it implements this methodology, Fitch will provide more details regarding the specific credit factors used to determine its opinion.
Reviews and any resultant rating changes will occur within the next two months.
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