Commitment of the authority to purchase bonds bearing interest at a daily or weekly rate that is tendered for purchase for which remarketing proceeds are insufficient.
KEY RATING DRIVERS
AMPLE LIQUIDITY: Funds designated by the IFA for self-liquidity, the spending of which is entirely at the discretion of the IFA, provide ample liquidity to meet tenders on internally-supported variable-rate debt that has not been remarketed. The IFA's stated intent is to maintain balances in the funds at about 2x the amount of its commitment, and current coverage is higher.
ADEQUATE TIMING MECHANISMS: Timing mechanisms detailed in supplemental indentures and an internal procedures letter allow for timely payment in the event of a failed remarketing.
SIGNIFICANT EROSION OF COVERAGE: A significant erosion of coverage through declines in available resources could pressure the rating. Given the very solid historical coverage, Fitch considers this unlikely.
The IFA provides self-liquidity for a portion of the variable-rate debt associated with its stadium financing. As of
The supplemental indenture for the stadium project provides for the payment of the purchase price by the authority of tendered 2008A stadium bonds during the daily and weekly rate modes in the event the proceeds of a remarketing of the bonds following a tender are insufficient. The commitment is sized to provide for the entire principal amount of the bonds plus interest coverage of 37 days calculated at a maximum interest rate of 12%. The short-term 'F1+' rating will expire on
The IFA was created in 2005, consolidating the debt-issuing entities of the state. The stadium and related convention center bonds funded a large project that included construction of a new stadium in downtown
Additional information is available at 'www.fitchratings.com'.
--'U.S. State Government Tax-Supported Rating Criteria' (
--'Rating U.S. Public Finance Short-Term Debt' (
U.S. State Government Tax-Supported Rating Criteria
Rating U.S. Public Finance Short-Term Debt
Source: Fitch Ratings
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