From Deseret News archives:

UTA bond rated 'AA' by 1 of 3 agencies

Published: Thursday, March 13, 2008 12:14 a.m. MDT
 |  E-MAIL | PRINT | FONT + - 
The Utah Transit Authority's $700 million 2008 sales tax revenue bond received a 'AA' rating from one of the three services that evaluate U.S. bond issuers.

Fitch Ratings issued the grade on this year's bond and said in a press release that the rating reflects "the strength and diversity of the authority's service area in Utah's economic epicenter (the Wasatch Front), the pledge of growing sales tax revenue that currently provide ample coverage, and the demonstrated record of successfully and conservatively managing transit service operations and expansion."

The ratings are based on a number of criteria that include current and future performance evaluations, risk of loss or default and ability to meet financial commitments.

Carrie Bohnsack-Ware, spokeswoman for UTA, said the rating was "very good" and the same one received on last year's bond.

"This company ... hasn't given any higher rating than 'AA' to any municipal transit agency in the country," Bohnsack-Ware said.

Revenue generated by the bonds will go toward expansion goals that include the FrontRunner South (SLC to Provo) line, light-rail extensions and other system improvements.

Story continues below
Bohnsack-Ware said UTA expects equally positive ratings from Moody's Investor Services and Standard and Poor's Rating Services, the other two agencies that rate municipal bonds, which should be issued in the next few weeks.

Rand Jolley, a Wachovia Securities branch manager in Salt Lake City, said the 'AA' rating is very strong and definitely "investment grade."

"Municipal bonds are very attractive to folks in a high-tax bracket," Jolley said. "Since there is no state or federal tax applied to interest income on bonds, it outperforms other options that may have higher interest, but no tax advantages."

Bohnsack-Ware said that an additional benefit of the the high bond rating is that it will help save taxpayer dollars.


E-mail: araymond@desnews.com

Comments

You can be the first to comment on this story.

previousnext

Latest comments

Jared Quayle is a stud. He plays like a beast every time he touches the...

No Phx is not a majority LDS city Mesa is. As far as Tom's comment about...

BYU would like friendlier rivalry

Lest my Utah friends think I was just going to bang on my own, I think UteFan...

You can read the official declaration online via a photo of the original....

"McFeatters states that what Palin is doing, and doing brilliantly, is being...

BYU would like friendlier rivalry

don't mean to pick on you but fans from both sides make it easy to despise...

Boys basketball rankings

Nick Paulos is a great shooter, and Connor Brady's decent. But Provo and Kyle...

Explain this to me. He claims a utah fan ran on the field and threw a CUP of...

The International Center for Religion and Diplomacy mentioned in this article...

BYU doesn't have to make the U sound anti-Mormon, it's a fact; there is a...

Advertisements