MOODY'S ASSIGNS Aa3 RATING AND STABLE OUTLOOK TO THE REGIONAL TRANSPORTATION DISTRICT, COLORADO, SALES TAX REVENUE REFUNDING BONDS SERIES 2010A

Posted on: December 14, 2009, 2:15 pm

NEW YORK, Dec 14, 2009 -- Moody's Investor Service has assigned an Aa3 rating with a stable outlook to the Regional Transportation District's (RTD) Sales Tax Revenue Refunding Bonds Series 2010A. The bonds are secured by a senior lien gross revenue pledge of RTD's 0.6% sales tax revenues. Bond proceeds will partially refund the Series 2001A, 2002B, and 2004A bonds for debt service savings without extending the structure. At the same time, Moody's also affirms the Aa3 rating with a stable outlook to RTD's 0.6% and 0.4% sales tax revenue bonds, respectively. The rating affirmations reflect the sound coverage of debt service by pledged revenues, prudent fiscal management as evidenced by regular rate increases and a healthy liquidity position, and weakened but important regional economy. These strengths help position RTD as it faces a number of challenges in the next few years including declining sales tax revenues, addressing its sizeable swap portfolio, and a significant capital funding gap for its FasTracks expansion program...

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