Dunkirk, NY GO Debt Rating Outlook Revised To Stable From Negative On Actions To Minimize Lost Revenue

Stocks and Financial Services Press Releases Wednesday March 8, 2017 09:26
NEW YORK--8 Mar--S&P Global Ratings

NEW YORK (S&P Global Ratings) March 7, 2017--S&P Global Ratings revised theoutlook on its 'A+' long-term rating and underlying rating (SPUR) on Dunkirk,N.Y.'s general obligation (GO) debt to stable from negative.

The rating action reflects S&P Global Ratings' opinion of the steps the cityhas taken to mitigate lost revenue due to NRG Energy Inc. reducing itspayments in lieu of taxes for fiscal 2017 to 15%. The city has received 80% ofthe 85% of revenue it would have lost through additional state aid. Tomitigate the remaining balance, the city cut expenses to match lost revenue.

At the same time, S&P Global Ratings assigned its 'A+' long-term rating andstable outlook to Dunkirk's $8.17 million series 2017 GO public improvementbonds and affirmed its 'A+' long-term rating and SPUR on the city's GO debt.

"We do not expect to change the rating within the two-year outlook period. Webelieve current economic factors--including the city's low market value percapita, highly concentrated tax base, and adequate debt profile--limit ourability to raise the rating," said S&P Global Ratings credit analyst LaurenFreire. "However, we could lower the rating if performance were to weaken,resulting in significantly lower reserves, or if the city cannot continue tomitigate lost revenue through additional state aid or cutting expenses."

The stable outlook reflects S&P Global Ratings' opinion that Dunkirk willlikely continue to adjust its budget to maintain structural balance while itpreserves very strong reserves.
The city's faith-and-credit pledge secures the bonds.
Officials intend to use series 2017 bond proceeds to finance existing bondanticipation notes permanently.

Latest Press Release

Isotropic Systems Raises $14 Million in Series A Funding Led by Boeing HorizonX Ventures to Advance Space-Based Connectivity

- Isotropic's approach to next-generation integrated terminal creates profound change in terminal economics and performance to unlock the satellite industry's full potential Isotropic Systems Ltd., the next-generation integrated satellite terminal...

Global economic growth expected to slow in 2019

The global economy as a whole is expected to slow in 2019 as G7 countries return to long-run average growth rates, according to new projections from PwC in its latest Global Economy Watch. PwC expects that the pick up in growth of most major economies...

QNB Group: Financial Results for the Year Ended 31 December 2018

QNB, the largest financial institution in the Middle East and Africa (MEA) region, announced its results for the year ended 31 December 2018. (Photo: https://mma.prnewswire.com/media/808498/QNB_Group_Head_Office.jpg ) Net Profit for the year ended 31...

CIMB THAI announces 2018 financial results with increased in operating income due to loan growth and lower gross NPL ratio. To fully move forward with Fast Forward program.

- Net interest income increased THB 544.3 million YoY mainly from loan expansion and higher interest income on investments. - Profit before tax of THB 271.2 million. - NPL ratio of 4.3% compared to 4.8% YoY due to more efficient risk management policies...

KTC decreases interest and usage fee to Bt. 199 for applying KTC PROUD Revolving Loan.

Ms. Phichamon Jitpentham, Vice President - Personal Loans, "KTC" or Krungthai Card Public Company Limited, helps lighten the loads of consumers' money usage by providing the special privilege to pay a lump sum of Bt. 199 for interest and usage fee for...

Related Topics