Moody's assigns Aaa to Huntsville's (AL) $72.7M GO Warrants, Series 2014A,B & C

Posted on: July 25, 2014, 1:03 pm

NEW YORK, July 25, 2014 --Moody's Investors Service has assigned a Aaa rating to the City of Huntsville's $42.1 million General Obligation Refunding Warrants, Series 2014-A, $18.7 million General Obligation Public Safety Facility Refunding Warrants, Series 2014-B and $11.9 million General Obligation School Refunding Warrants, Series 2014-C. Moody's also maintains a Aaa on approximately $600 million in previously issued parity debt and a Aa1 rating on approximately $80 million in outstanding lease revenue debt. Moody's additionally maintains a Aaa issuer rating, reflecting the implied general obligation, unlimited tax credit strength; there is no outstanding debt currently associated with this security. The outlook remains stable. Proceeds from the Series 2014-A Warrants will refund portions of the Series 2005-A, 2005-C, 2007-A and 2009-A Warrants for an expected net present value savings of 6.1% of refunded principal. The Series 2014-B Warrants will refund a portion of the Series 2007 PBA Municipal Justice and Public Safety Center Lease Revenue Capital Improvement and Refunding Bonds for an expected net present value savings of 6.8% of refunded principal. The Series 2014-C Warrants will refund a portion of the Series 2009-B GO School Warrants for an expected net present value savings of 4.6% of refunded principal. None of the refundings extend the life of the bonds from their original maturities...

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