The senior lien bonds are secured by a first lien on pledged revenues, which consist of a countywide car rental and hotel occupancy tax and facility-related taxes and revenues. The subordinate lien bonds are secured by a subordinate lien on pledged revenues after payment of statutory tourism promotion contributions, indexed 5% per year from a
KEY RATING DRIVERS
COURT RULING CREATES UNCERTAINTY: The Negative Watch indicates concern over the potential interruption or cessation of car rental tax revenues, which represent approximately 30% of a narrow and economically sensitive pledged revenue stream.
APPEAL OF COURT RULING: This rating action incorporates Fitch's understanding that the authority and the
ONGOING TAX COLLECTIONS: The current rating action also assumes that the authority can continue collection of car rental tax revenues during the appeal process.
FAVORABLE RESOLUTION OF LITIGATION: Final resolution of litigation pertaining to the legality of pledged revenues in favor of the authority would likely result in removing the ratings from the Negative Watch.
ELIMINATION OF PLEDGED REVENUE: Conversely, resolution that eliminates the car rental tax from pledged revenue, without compensating action by the state of
INTERRUPTION OF TAX REVENUES: The rating would be adversely affected by the interruption of car rental tax collections during the appeal process without compensating action to replace it. A requirement to reimburse taxpayers for previously collected taxes would heighten negative rating pressure.
A county-wide lodging (hotel tax) makes up the balance of the authority's tourism tax revenues, together comprising about 60% of fiscal 2013 pledged revenues. The other major revenue source - facility revenue - is composed of certain state income taxes from the
Fiscal 2013 revenues cover maximum annual debt service (MADS) in fiscal 2031 at 1.78x-1.68x using normalized revenues, adjusted for a fiscal 2013 nonrecurring car rental tax adjustment. Excluding car rental tax revenues, MADS coverage converges on 1.0x, but reliance on facility revenue for debt service in lieu of the car rental tax revenues would deplete monies otherwise required for stadium operations.
The court's Under Advisement Ruling directed the plaintiffs to submit a form of judgment by
Additional information is available at 'www.fitchratings.com'.
In addition to the sources of information identified in Fitch's Tax-Supported Rating Criteria, this action was additionally informed by information from Creditscope,
--'Tax-Supported Rating Criteria' (
--'U.S. Local Government Tax-Supported Rating Criteria' (
Tax-Supported Rating Criteria
U.S. Local Government Tax-Supported Rating Criteria
Source: Fitch Ratings
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