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Fitch Rates State-Backed Waterbury SCARF Bonds ‘AA’
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Business New Haven
4/15/2002
By: BNH
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NEW YORK, N.Y. - Fitch Ratings assigned an 'AA-' to Waterbury's $95,810,000 General Obligation Special Capital Reserve Fund Bonds 2002 series A&B, based on state-backed credit enhancement. In addition, Fitch upgraded Waterbury's underlying general obligation rating to 'BBB-' from 'BB' on $63.7 million outstanding Waterbury general obligation bonds issued prior to 2002.
The 'AA-' rating on the series 2002 bonds is based on a state debt service reserve replenishment mechanism, which has been appropriated by the state of Connecticut and does not require further legislative approval. The upgrade of Waterbury's underlying general obligation rating to 'BBB-' reflects the support, oversight and active involvement of the state of Connecticut on Waterbury's debt and financial operations, coupled with the statutory interception of city property tax revenues for debt service, and the establishment and operation of the Waterbury Financial Planning and Assistance Board.
Proceeds will be used to finance - over 20 years - approximately $88 million of accumulated deficits in Waterbury's general and internal service funds that were generated in fiscal years 2000 and 2001.
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