Bond ratings boon for Metroplex Standard & Poor’s gives A+ rating, alongside Moody’s A1 rating By John Purcell As of Wednesday, August 15, 2012 -4:22 p.m.
#SCHENECTADY COUNTY — Two newly awarded bond ratings position Schenectady Metroplex Development Authority on a solid path to savings.
#Standard & Poor’s Ratings Services on Tuesday, Aug. 7, issued a new “A+” rating for Metroplex’s serial bonds totaling $13.6 million, which is the highest upper medium grade bond rating. Moody’s Investors service also assigned an equal rating of “A1” on Thursday, Aug. 9, to the serial bonds. Both ratings represent the authority holds a low credit risk and has a strong capability to repay debt.
#“They are good, solid bond ratings,” Metroplex Chairman Ray Gillen said. “People look at the bond rating as a good quality bond.”
#Gillen said the bond ratings reflected well on Metroplex’s management and of the direction the authority has taken on economic development countywide.
#“We continue to invest in new projects that in turn create additional tax base and new jobs,” Gillen said in a statement.
#Metroplex service districts cover most of the City of Schenectady and other towns in the county. Niskayuna expanded the authority’s service area earlier this year. Metroplex has approved project grants, expenditures and loans totaling more than $143 million, with it funding 155 façade grants countywide, Metroplex Board of Directors member Bill Chapman previously said.
#Also, S&P credited the authority for adding more than 1.2 million square feet of new or renovated commercial space to downtown Schenectady, revitalizing the “cultural district” and securing The Golub Corporation’s corporate headquarters.
#“Each of these projects increase the number of workers, students, area residents and visitors frequenting the downtown area,” S&P said in its report.
#The recent rating will help Metroplex as it seeks to refinance its debt, with Moody’s projecting a savings of 5.5 percent and S&P slightly higher at 5.7 percent.
#Gillen estimated savings would total more than $500,000 annually and S&P roughly estimated the savings could total $747,500.
But how can this be??? I hear nothing but doom and gloom about the Metroplex on this board... can the board majority opinion be totally wrong???
The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. John Kenneth Galbraith
It created a additional tax base? Well we know for a fact that is bogus
"In the beginning of a change, the Patriot is a scarce man, brave, hated and scorned. When his cause succeeds, however, the timid join him, for then it costs nothing to be a Patriot."
It's only their bond rating that is A+ . because it's backed by unlimited taxpayer money, guaranteed by the State of NY.
It has nothing to do with their operating / lending policies of loaning money and giving grants to "friends and family". When you live in Schenectady County, THEN you have the right to agree or disagree. When you don't, shut the he11 up.
It's only their bond rating that is A+ . because it's backed by unlimited taxpayer money, guaranteed by the State of NY.
It has nothing to do with their operating / lending policies of loaning money and giving grants to "friends and family". When you live in Schenectady County, THEN you have the right to agree or disagree. When you don't, shut the he11 up.
Rusty must have just finished his big bowl of Extra Crispy Grumpy Flakes for breakfast!
He now assumes the authority to determine who does and who does not have the right to agree or disagree! Start the day with a rant!
The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. John Kenneth Galbraith
It's only their bond rating that is A+ . because it's backed by unlimited taxpayer money, guaranteed by the State of NY.
Agreed...There is no political opposition that is looking to dissolve Metroplex. The Democrat, Republican, and Alliance Party support Metroplex. The A+ rating is a reflection of the A+ dupes living in Schenectady County willing to pay sales tax on everything they buy in order to pay back the public bond debt that has been accumulated so it could be given to millionaires.
When you have carte blanche to take the sales tax, how COULD you have a low bond rating. They will always bring in as much as they spend or better with that happening for them. They didn't build that.
"While Foreign Terrorists were plotting to murder and maim using homemade bombs in Boston, Democrap officials in Washington DC, Albany and here were busy watching ME and other law abiding American Citizens who are gun owners and taxpayers, in an effort to blame the nation's lack of security on US so that they could have a political scapegoat."
But how can this be??? I hear nothing but doom and gloom about the Metroplex on this board... can the board majority opinion be totally wrong???
They are hoarding cash. It means nothing. They are killing the host....sucking the city dry. If Metroplex was such a success we would feel it. Every county in the state would copy this model.
Life is tough, but it's tougher when you're stupid - John Wayne
TIP TO NEW VISITORS TO THIS FORUM - To improve your blogging pleasure it is recommended to ignore (Through editing your prefere) the posts of the following bloggers - DemocraticVoiceofReason, Scotsgod08 and Smoking Bananas. They continually go off topic, do not provide facts and make irrational remarks. If you do not believe me, this can be proven by their reputation scores or by a sampling of their posts.
"Rating Action: Moody's assigns A1 rating to the Schenectady Metroplex Development Authority's (NY) $13.6 million refunding bonds
Global Credit Research - 09 Aug 2012 A1 rating affirmed on $44 million in parity debt outstanding New York, August 09, 2012 --
Moody's Rating
Issue: General Resolution Refunding (Serial) Bonds, 2012; Rating: A1; Sale Amount: $13,585,000; Expected Sale Date: 8-14-2012; Rating Description: Special Tax: Sales
Opinion
Moody's Investors Service has assigned an A1 rating to Schenectady Metroplex Development Authority's (NY) $13.6 million General Resolution Refunding (Serial) Bonds, 2012. The bonds are secured by a senior lien pledge of a dedicated portion of Schenectady County's (G.O. rated Aa1) local sales tax.
SUMMARY RATINGS RATIONALE
The A1 rating reflects historic sales tax growth in the county, its strengthening economy, and satisfactory legal provisions. The rating also incorporates Moody's expectation that debt service coverage levels may decline, given new debt expected to be issued in the next year. Proceeds of the bonds will refund all or a portion of the Series 2001A and Series 2004B bonds with an estimated net present value savings of 5.5%. The Authority has received authorization from the State Comptroller of New York to lengthen the maturity schedule by three years to 2027.
STRENGTHS:
- Consistently growing revenue stream
- Expanding local economy in the capital region
CHALLENGES:
- Coverage is below average
- Weak legal covenants
WHAT COULD MAKE THE RATING GO UP:
- Significant increases in revenues and coverage
WHAT COULD MAKE THE RATING GO DOWN:
- Declines in coverage levels from current projections
The principal methodology used in this rating was US Public Finance Special Tax Methodology published in March 2012. Please see the Credit Policy page on http://www.moodys.com for a copy of this methodology.
REGULATORY DISCLOSURES
The Global Scale Credit Ratings on this press release that are issued by one of Moody's affiliates outside the EU are endorsed by Moody's Investors Service Ltd., One Canada Square, Canary Wharf, London E 14 5FA, UK, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that has issued a particular Credit Rating is available on http://www.moodys.com.
Information sources used to prepare the rating are the following: parties involved in the ratings and public information.
Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.
Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources.
However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.
Please see the ratings disclosure page on http://www.moodys.com for general disclosure on potential conflicts of interests.
Please see http://www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating. "
Life is tough, but it's tougher when you're stupid - John Wayne
TIP TO NEW VISITORS TO THIS FORUM - To improve your blogging pleasure it is recommended to ignore (Through editing your prefere) the posts of the following bloggers - DemocraticVoiceofReason, Scotsgod08 and Smoking Bananas. They continually go off topic, do not provide facts and make irrational remarks. If you do not believe me, this can be proven by their reputation scores or by a sampling of their posts.
"Schenectady County’s secondquarter sales tax revenue actually fell 1.25 percent compared with a year earlier." - August 8th, 2012
From Moody's above:
"SUMMARY RATINGS RATIONALE The A1 rating reflects historic sales tax growth in the county, its strengthening economy, and satisfactory legal provisions."
This rating does not take into account the recent sales tax decline. This rating story broke days after the sales tax decline was published.
Way to pick and chose which load of crap smells better Gillen.
In English this means that if any of their buddies defaults then the taxpaeyer holds the bag. No big surprise since Metroplex is set up to assist cronies get loaded and taxpayers get bled.
"While Foreign Terrorists were plotting to murder and maim using homemade bombs in Boston, Democrap officials in Washington DC, Albany and here were busy watching ME and other law abiding American Citizens who are gun owners and taxpayers, in an effort to blame the nation's lack of security on US so that they could have a political scapegoat."
In English this means that if any of their buddies defaults then the taxpaeyer holds the bag. No big surprise since Metroplex is set up to assist cronies get loaded and taxpayers get bled.
CORRECT!!!!
in the end IT'S A NYS AUTHORITY WITHOUT BOUNDARIES....
right now the ratings agencies are talking up a storm because the economy/investment is tinkering on the 'what if' side ALL OVER.....
what is the actual value? THEY DON'T KNOW....they are salespeople of investment....they wouldn't have a job is they said 'YUK'......
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
The objective of public authorities is to finance, construct and operate revenueproducing facilities for the public benefit, assist the public sector with projects intended to spur economic development, provide financial support for non-profit sector projects that serve public needs, and/or coordinate the development or management of resources that transcend traditional political boundaries. The benefits of public authorities include their ability to: • finance public improvements without increasing taxes, • assess fees on users to cover the costs of construction or operation,
1 Office of the State Comptroller, Public Authority Reform: Reining in New York’s Secret Government, February 24, 2004. 2 Albany Convention Center, Westbury Community Development Agency and Harrison Parking Authority. 8 • avoid the use of broad-based dedicated revenue streams, • finance the public takeover of private enterprises, • remove entities and associated operations from the direct control of elected officials, and • provide a more flexible management environment than is typical of government, including being able to address State, regional and local concerns. 3 Many of New York’s public authorities embody the positive attributes of this definition. Unfortunately, however, the good work of select public authorities continues to be eclipsed by the irresponsible actions and mismanagement of resources by others. Concerns regarding public authority operations are not new; many of the issues being examined today have been discussed in a dozen or more reports issued by blue-ribbon committees, State agencies or the Legislature, as well as by the Comptroller. 4 One concern regarding public authorities is that due to varying degrees of State oversight and control, the more than 730 public authorities and their subsidiaries are not accountable to the government or the residents of New York State. New Yorkers pay for public authorities in the form of rates, tolls or fees. Our taxes offset authorityrelated tax exemptions and pay the debt service on authority-issued debt. Yet, New Yorkers are denied the traditional consumer avenues of protest in paying for these costs. In most cases, New Yorkers do not have direct control over how their tax dollars might be used in response to authority decisions and have no choice but to use authority facilities. These corporations have no stockholder meetings or proxy votes. The people of New York must rely on their government to keep these entities in check. Another ongoing concern regarding public authorities has been their use of non- voter approved debt or “backdoor borrowing,” which has grown significantly. As of March 31, 2004, the level of outstanding State-funded authority debt had increased to an estimated $43 billion 5 (nearly 90 percent of total outstanding State-funded debt). In 1985, approximately 60 percent of total State-funded debt was attributed to public authorities. The Capital Plan included in the 2005-06 Executive Budget projects significant growth in authority debt, which is expected to account for more than 95 percent of State-funded debt outstanding in 2009-10. Over the life of the Capital Plan,
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
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