MOODY'S ASSIGNS Aa2 RATING AND STABLE OUTLOOK TO CITY OF WICHITA'S (KS) GO BONDS, SERIES 799, 800, 800A, AND 800B, AND MIG 1 RATING TO GO TEMPORARY NOTES, SERIES 233, 234, AND 236

Posted on: January 27, 2010, 11:41 am

NEW YORK, Jan 27, 2010 -- Moody's Investors Service has assigned a Aa2 rating and stable outlook to the City of Wichita's (KS) $23.5 million General Obligation Bonds, Series 799; $11.0 million General Obligation Bonds, Series 800; $13.2 million General Obligation Bonds, Series 800A; and $1.6 million General Obligation Bonds, Series 800B (Taxable Under Federal Law). Moody's has also assigned a MIG 1 rating to the city's $5.3 million General Obligation Renewal and Improvement Temporary Notes, Series 233 (Taxable Under Federal Law); $70.8 million General Obligation Renewal and Improvement Temporary Notes, Series 234; and $7.7 million General Obligation Renewal and Improvement Temporary Notes, Series 236. Concurrently, Moody's has affirmed the Aa2 rating and stable outlook on the city's outstanding long term general obligation debt. Wichita has $514.9 million of outstanding long term general obligation debt, including the current bonds. Proceeds of the current bonds and notes will finance various capital improvements throughout the city. 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, tax increment revenues, and/or future general obligation debt proceeds. Assignment of the Aa2 rating and stable outlook reflects the city's substantial tax base and average socio-economic profile; aircraft manufacturing industry concentration that poses ongoing challenges including significant workforce reductions; well-managed finances; operating pressures that are expected to be addressed through continued expenditure controls; debt levels that are expected to remain elevated; and 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 Aa2 rating...

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