MOODY'S ASSIGNS Aa2 RATING TO FLOYD COUNTY'S (GA) $8 MILLION REVENUE BONDS, ISSUED THROUGH COUNTY'S DEVELOPMENT AUTHORITIES

Posted on: May 10, 2010, 2:59 pm

NEW YORK, May 10, 2010 -- Moody's Investors Service has assigned a Aa2 rating to Floyd County's (GA) $4.9 million Revenue Bonds, Tax-Exempt Series 2010 and $3.1 million Recovery Zone Revenue Bonds, Taxable Series 2010; both series are being issued through the Floyd County Development Authority and the Rome-Floyd County Development Authority. Concurrently, Moody's has affirmed the Aa2 rating on the county's $33.3 million in unlimited tax general obligation debt and $118.8 million in limited tax general obligation debt. Pursuant to an intergovernmental contract, the 2010 bonds are secured by the county's absolute and unconditional pledge to levy a property tax, subject to a 1-mill limit, to cover debt service on the bonds. The Aa2 rating reflects the healthy debt service coverage provided by the limited tax pledge, satisfactory legal provisions, and the expectation of no additional parity bonds. The rating also reflects the county's role as a regional economic center, below-average socio-economic levels, and a solid financial position supported by ample fund balance levels, conservative fiscal management, and a low debt burden. Bond proceeds will finance land acquisition for future economic development and additionally will refund a $2 million outstanding taxable revenue note originally issued in a variable rate mode...

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