MOODY'S ASSIGNS Aaa RATING AND STABLE OUTLOOK TO THE METROPOLITAN COUNCIL'S (MN) $17.5 MILLION GO WASTE WATER REVENUE REFUNDING BONDS, SERIES 2010A AND $36 MILLION TAXABLE GO WASTE WATER REVENUE BONDS, SERIES 2010B

Posted on: February 8, 2010, 5:42 pm

NEW YORK, Feb 8, 2010 -- Moody's Investors Service has assigned a Aaa rating and stable outlook to the Metropolitan Council's (MN) $17.5 million General Obligation Waste Water Revenue Refunding Bonds, Series 2010A and $36 million Taxable General Obligation Waste Water Revenue Bonds, Series 2010B. Concurrently, Moody's has affirmed the Aaa rating on the Council's $1.2 billion outstanding general obligation debt and the Aa1 rating on the Council's outstanding $12 million Certificates of Participation, Series 2004G, which financed the construction of the Council's main offices and is subject to annual appropriation. The certificates are rated one notch off of the general obligation rating due to the risk of non-appropriation and the essentiality of the financed project. Proceeds of the Series 2010A bonds will current refund certain outstanding maturities of the Council's 1996B sewer notes held by the Minnesota Public Finance Authority for estimated interest cost savings. The Series 2010B will finance improvements and acquisitions for the Council's wastewater system. The current issues are secured by the Council's general obligation unlimited property tax pledge. Debt service on the Series 2010A and Series 2010B bonds is to be paid with net revenues of the Council's wastewater system. Assignment of Moody's highest Aaa rating reflects the Council's diverse regional economy that is experiencing the effects of the economic recession but continues to benefit from institutional stability; well-managed finances with a plan to fully fund its estimated Other Post Employment Benefit (OPEB) liability; recently improved transit operations despite dependence on volatile Motor Vehicles Sales Taxes (MVST); satisfactory sewer system financial operations despite declining reserves; and above average overall debt burden that is driven by the borrowing of underlying entities...

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