Arvada, CO’s Series 2003 Bonds Is Raised To ‘AAA’
Standard & Poor's Ratings Services raised its underlying rating (SPUR) on Arvada, Colo.'s series 2003 sales and use tax refunding revenue bonds to 'AAA' from 'AA+' based on continued sales tax revenue growth, which has led to improved debt service coverage levels. In addition, Standard & Poor's assigned its 'AAA' long-term rating, with a stable outlook, to the city's sales and use tax refunding revenue bonds series 2009. The series 2009 bonds are secured by a 3% sales tax pledge. Legal provisions include, in our view, a very strong additional bonds test requiring 3x maximum annual future debt service, and the creation of a three-pronged reserve fund in the event the city does not receive net pledged revenues in the amount of at least equal to 300% of the combined maximum annual debt service (MADS). Bond proceeds will be used to refund the city's outstanding series 1998 and series 1999 sales tax bonds. The series 2009 bonds are subordinate to the series 2003 bonds.