Fitch Upgrades Bountiful Municipal Building Authority (Utah) $3MM LRBs to ´AA-´; Outlook Stable

In the process of routine surveillance, Fitch Ratings upgrades Bountiful Municipal Building Authority, Utah´s $3 million series 2003 lease revenue bonds (LRBs) to ´AA-´ from ´A+´. The Rating Outlook is Stable. The upgrade reflects the city´s improved assessed valuation (AV) growth, enhanced financial position and flexibility, lower unemployment rates, and the region´s resilient housing market. The ´AA-´rating reflects the city´s strong financial position, including a consistently high unreserved fund balance and historically balanced operations, low debt levels with fast amortization rates, limited capital needs, high income levels, and no planned debt issuance. These factors are balanced by the general fund´s reliance on transfers from the light and power fund, and the leased asset´s low essentiality. The essentiality... [read full story]