NEW YORK--(BUSINESS WIRE)-- <\/p>\n
Fitch Ratings assigns a 'BBB' rating to the following revenue bonds of the Virgin Islands Public Finance Authority (VIPFA): <\/p>\n
--$51.33 million revenue refunding bonds (Virgin Islands matching fund loan note), series 2013B (senior lien). <\/p>\n
The bonds refund outstanding senior lien matching fund revenue bonds for debt service savings and sold via private placement on Sept. 30, 2013. <\/p>\n
The Rating Outlook is Stable. <\/p>\n
SECURITY <\/p>\n
Special, limited obligations of VIPFA payable from and secured by a pledge of and lien on the trust estate of the senior lien indenture, primarily matching fund revenues associated with the Cruzan and Diageo facilities located on the U.S. Virgin Islands (USVI). <\/p>\n
KEY RATING DRIVERS <\/p>\n
ESTABLISHED PLEDGED REVENUE STREAM: Matching funds are an established revenue stream based on federal law derived from substantially all excise taxes imposed and collected on certain products produced and exported to the U.S.; primarily rum. As the matching fund revenues are not an appropriated revenue source of the U.S. government, they did not fall under the provisions of the recent U.S. federal funding sequestration. <\/p>\n
RECENTLY REVISED PLEDGED REVENUE FORECAST WEAKENS SECURITY: The final form of the verification and revenue report issued in conjunction with the recent offering of series 2013A matching fund loan notes was revised substantially from prior forecasts of IHS Global Insight. The revision corrects errors made in calculating the receipt of matching fund revenue from Diageo production and lowers expected total matching fund revenue starting in fiscal 2013 (year ended Sept. 30, 2013) by an annual average of 11.8% through the life of the bonds. <\/p>\n
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See the original post here: <\/p>\n
Fitch Rates Virgin Islands' $51MM Matching Fund Bonds 'BBB'; Outlook Stable<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" NEW YORK--(BUSINESS WIRE)-- Fitch Ratings assigns a 'BBB' rating to the following revenue bonds of the Virgin Islands Public Finance Authority (VIPFA): --$51.33 million revenue refunding bonds (Virgin Islands matching fund loan note), series 2013B (senior lien). The bonds refund outstanding senior lien matching fund revenue bonds for debt service savings and sold via private placement on Sept. 30, 2013 Continue reading