MOODY'S ASSIGNS Aa1 RATING AND STABLE OUTLOOK TO CITY OF WICHITA'S (KS) GO SALES TAX REFUNDING BONDS, SERIES 2010A AND GO REFUNDING BONDS, SERIES 2010B, AND MIG 1 RATING TO GO IMPROVEMENT TEMPORARY NOTES, SERIES 240

Posted on: August 13, 2010, 9:29 am

NEW YORK, Aug 13, 2010 -- Moody's Investors Service has assigned a Aa1 rating and stable outlook to the City of Wichita's (KS) $22.3 million General Obligation Sales Tax Refunding Bonds, Series 2010A and $29.9 million General Obligation Refunding Bonds, Series 2010B. Moody's has also assigned a MIG 1 rating to the city's $140 million General Obligation Improvement Temporary Notes, Series 240. Proceeds of the Series 2010A bonds will refund the city's outstanding General Obligation Sales Tax Bonds, Series 2004A and the Series 2010B bonds will refund the city's outstanding General Obligation Temporary Notes Series 768, Series 770, Series 772, Series 773 and Series 774 for estimated net present value savings. Proceeds of the notes will provide temporary financing for improvements to the city's aquifer storage and recovery project for the water system. 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 utility revenues, and/or be refinanced into long term debt with general obligation debt. Concurrently, Moody's has affirmed the Aa1 rating and stable outlook on the city's outstanding $563.8 million long term general obligation debt, including the current 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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