Moody's assigns Aa1 rating to Denver Board of Water Commissioners, CO master lien water revenue bonds

Posted on: June 14, 2012, 6:00 pm

NEW YORK, June 14, 2012 --Moody's Investors Service has assigned a Aa1 rating with a stable outlook to the City and County of Denver Board of Water Commissioners, Colorado, Master Resolution Water Refunding Revenue Bonds Series 2012B and Master Resolution Water Refunding Revenue Bonds Series 2012C (Taxable) expected to be issued in the aggregate amount of $121.6 million. The board's outstanding master resolution and senior lien water revenue bonds totaling $296.4 million also carry a Aa1 rating. The board's rating outlook is stable. The current offering is secured by a lien on net revenues that is subordinate to the board's senior lien bonds. Moody's does not make a rating distinction between the master resolution and senior bonds because the senior lien is closed and given that the primary purpose of the master resolution was to provide for updated and modern legal provisions. The current offering is issued under an amended master indenture which is on parity with master resolution bonds but removes a requirement for a debt service reserve on all new issues, allowing the board to elect for a reserve at its discretion. Bond proceeds will refund various outstanding board general obligation and senior lien revenue bonds...

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