Trophy Club Public Improvement District No. 1, TX Debt Rating Raised To #BBB# On Updated Methodology

Stocks and Financial Services Press Releases Thursday June 21, 2018 11:00
CHICAGO--21 Jun--S&P Global Ratings

CHICAGO (S&P Global Ratings) June 20, 2018--S&P Global Ratings raised its underlying rating (SPUR), on Trophy Club Public Improvement District (PID) No. 1, Texas' special assessment revenue refunding debt, issued for Trophy Club Town, to 'BBB' from 'BBB-'. The outlook is stable.

The rating action reflects the application of our updated methodology "Special Assessment Debt," published April 2, 2018, on RatingsDirect.

"The stable outlook reflects our expectation that the local economy and real estate market will remain stable," said S&P Global Ratings credit analyst Daniel Hughes. "In addition, we expect assessments to be sufficient to pay debt service on the bonds, and delinquencies in the assessment area to remain low."

The bonds are secured by pledged revenues consisting of special assessments levied against certain parcels of land within the PID, which are levied in accordance with the Town of Trophy Club's Service and Assessment plan. Pursuant to the service-and-assessment plan, annual assessments will not exceed the amount required to pay debt service and collections. It is the PID's practice and intent to levy a special assessment that generates approximately 1x annual debt service coverage and an additional 5% for administrative and collection costs.

Under the indenture, in the event of delinquencies, the PID could use its debt service reserve fund or prepayment-delinquency fund to pay annual debt service. We understand the indenture does not allow for the increase of annual assessments to replenish reserves due to delinquent payments. In the event of prepayments, we understand the PID could use its prepayment-delinquency fund to cover interest it otherwise would have received from service area residents had they paid the assessment and accrued interest. The PID can only levy for debt service and collection costs and charge interest on the assessments. We understand the PID cannot issue any additional parity debt. Annual debt service payments on the series 2015 bonds gradually increases to $2.7 million in fiscal 2033, the bonds' final maturity, from $2.17 million in fiscal 2017.

Latest Press Release

Fitch Affirms Standard Chartered Bank (Thai) at #A-#; Outlook Stable

Fitch Ratings has affirmed Standard Chartered Bank (Thai) Public Company Limited's (SCBT) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'A-' with a Stable Outlook. At the same time, the agency has affirmed SCBT's National...

Photo Release: KBank recognized as having the highest corporate brand value in the banking business category 2nd consecutive year

At Sukree Kaewcharoen Auditorium, the Stock Exchange of Thailand (SET), Ms. Kattiya Indaravijaya, KBank President, recently represented KBank to receive the "Thailand's Top Corporate Brand Values 2018" award in the banking business category from...

MicroBitcoin Open Source Community เซ็นสัญญากับสมาพันธ์แรงงานในเกาหลี เปิดโอกาสให้แรงงาน 1.5 ล้านคนได้ใช้เงินดิจิทัล

MicroBitcoin Open Source Community เซ็นสัญญากับสมาพันธ์แรงงาน Korea Association of Care Workers (KACW) เพื่อนำสกุลเงินดิจิทัล MicroBitcoin มาใช้ สัญญานี้ลงนามร่วมกันสามฝ่าย ได้แก่ MicroBitcoin Open Source Community, KACW และ Bluequotient...

MicroBitcoin Open Source Community Signs an Exclusive Contract with the Korea Association of Care Workers (KACW) to Expand its Usability to One and a Half Million Users

The MicroBitcoin Open Source Community has signed a contract with Korea Association of Care Workers (KACW) to adapt the MicroBitcoin blockchain network protocol. The trilateral contract was made between the MicroBitcoin Open Source Community, the Korea...

WICE establishes a joint-venture, EUROASIA TOTAL LOGISTICS, with its holding 40% of shares to provide cross-border transport services between China, Hong Kong

WICE establishes a joint-venture, "EUROASIA TOTAL LOGISTICS", with its holding 40% of shares to provide cross-border transport services between China, Hong Kong, and South East Asia with the expectation to achieve the first year's revenue at 200 million...

Related Topics