Moody's assigns Aa2 rating to City of Virginia Beach's (VA) $46.8 million Public Facility Revenue Bonds; negative outlook due to indirect linkage with US government rating

Posted on: May 24, 2012, 1:12 pm

NEW YORK, May 24, 2012 --Moody's Investors Service has assigned a Aa2 rating and negative outlook to the City of Virginia Beach's (VA) $21.56 million Public Facility Revenue Bonds, Series 2012A and $25.2 million Public Facility Refunding Revenue Bonds, Series 2012B. Moody's maintains a Aaa rating on $716 million of outstanding general obligation debt as well as a Aa2 rating on $307 in public facility revenue debt issued through the Virginia Beach Development Authority; the outlook remains negative. The bonds are secured by a General Fund appropriation of the city. Proceeds from Series 2012A will fund $21.5 million in new capital projects, including $19.8 million for the Williams Farm Community Recreation Center. Series 2012B refunds select maturities of the city's Series 1998 and 2003A Lease Revenue and Public Facility Revenue Bonds for an expected net present value savings of 15.6% of refunded principal, with no extension of maturity. The 1998 lease revenue bonds were issued to finance construction of the city's social services building and the 2003A bonds were originally issued to finance parking garages, land acquisition, equipment purchases and other capital needs...

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