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12-03-2012, 06:51 PM
  #404
OthmarAmmann
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Quote:
Originally Posted by barneyg View Post
Just to clarify, the Moody's report linked by Thomas L was the January 20, 2012 report when the city's general rating was downgraded from Aa2 to Aa3. But Sonny Munshi's Twitter quote by Whileee is for the November 30, 2012 downgrade (which hasn't been linked on this board I believe).
Holy crap, this is a total indictment. They downgraded ALL of the city's bonds, including the sewer and water bonds.

Quote:
Rating Action: Moody's downgrades Glendale, AZ's G.O. rating to A2, senior excise rating to A2, subordinate excise to A3, transit excise rating to A2, street and highway rating to A2; outlook is negative; water and sewer ratings downgraded to A1 and outlook is stable
Quote:
The downgrade of the city's water and sewer enterprise revenue ratings to A1 primarily reflects city management's recent practice of borrowing the enterprise's available liquidity in times of fiscal stress, namely to support a recent payment owed to the NHL.
Quote:
STRENGTHS

- Management's willingness to temporarily increase in the city's general sales tax levy rate

- Adoption of significant expenditure reductions amid a recessionary environment

- Still large tax base relative to many peers nationally

CHALLENGES

- A substantially weak financial position compared to rated peers

- Repayment of sizable long-term loans from several enterprise funds to the general fund that supported payments owed to the NHL

- Commitment to fund substantial long-term payments to the prospective buyer group of the NHL's Phoenix Coyotes for managing the city-owned and financed Jobing.com Arena


WHAT COULD MAKE THE RATINGS GO UP (REMOVAL OF THE CITY'S NEGATIVE OUTLOOK)

- Substantially improved operating performance, including positive and sustainable general fund reserves

- Significant growth in revenues pledged to the city's various excise debt obligations

WHAT COULD MAKE THE RATINGS GO DOWN

- Continued deterioration of the city's financial position

- Substantial, additional tax base declines

- Increased debt burden, including additional leveraging of the city's various excise tax revenues

- Sizable declines in revenues pledged to the city's various excise-type debt obligations

- Continued reliance on liquidity from enterprises to support general operating requirements

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