MOODY'S ASSIGNS Aa1 RATING AND STABLE OUTLOOK TO CITY OF WICHITA'S (KS) GO BONDS, SERIES 801, 802, 802A AND 802B, AND MIG 1 RATING TO GO RENEWAL AND IMPROVEMENT TEMPORARY NOTES, SERIES 238

Posted on: July 15, 2010, 7:05 pm

NEW YORK, Jul 15, 2010 -- Moody's Investors Service has assigned a Aa1 rating and stable outlook to the City of Wichita's (KS) $21 million General Obligation Bonds, Series 801; $6.1 million General Obligation Bonds, Series 802; $6.1 million General Obligation Bonds, Series 802A; and $1.3 million General Obligation Bonds, Series 802B (Taxable Under Federal Law). Moody's has also assigned a MIG 1 rating to the city's $57.8 million General Obligation Renewal and Improvement Temporary Notes, Series 238. Concurrently, Moody's has affirmed the Aa1 rating and stable outlook on the city's outstanding long term general obligation debt. Wichita has $535.8 million of outstanding long term general obligation debt, including the current bonds. Proceeds of the current bonds will finance various capital improvements throughout the city. Proceeds of the notes will refund the city's outstanding Series 234 and 236 General Obligation Temporary Notes as well as finance the initial stages of various capital improvement projects. The current issues are secured by the city's general obligation unlimited tax pledge. Debt service on the bonds is to be paid with property taxes and special assessments. Debt service on the notes is to be paid with property taxes, special assessments, and/or be refinanced into long term debt with general obligation debt bonds. Assignment of the Aa1 rating and stable outlook reflects the city's substantial tax base and average socio-economic profile; aircraft manufacturing industry concentration that is experiencing some rebounding, but continues to pose challenges for the city's employment base; well-managed finances with revenue pressures; and debt levels that are expected to increase despite rapid principal amortization. The MIG 1 rating is based on expected market access for any take-out financings, as well as the credit fundamentals inherent in the long term Aa1 rating...

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