72 percent, was written for a term of 10 years with a 25-year amortization, and delivers debt service coverage
Even so, Fitch expects that JEA's future debt service coverage
will remain in line with 2006 levels (approximately 2x, given the rising annual debt service).
As a result, actual debt service coverage
exceeds the 1.
Under Fitch scenarios which project 4%-6% annual traffic increases, well below the 9% average rate of the past six years, debt service coverage
would remain under the rate covenant, and would require an estimated $1.
Fitch's primary credit concerns are Sunnyside's thin debt service coverage
with a high reliance on turnover, future capital needs, and difficult labor market.
The 'AA' rating reflects RTA's growing and diverse service area; strong pledged sales tax support with high debt service coverage levels; the essentiality and demand for the transit services supported by pledged revenues; and solid operational and financial performance.
Debt service coverage levels are expected to remain strong given the significant demand on pledged revenues to fund the operating needs of the transit network, which are paid after debt service.
The 'AA-' rating for the new series 2006A sales tax revenue bonds (FasTracks bonds) reflects strong debt service coverage by RTD's sales tax pledge, a flexible capital plan, a high additional bonds test, and RTD's overall strong underlying credit fundamentals.
In addition to strong debt service coverage by sales tax revenues despite declines a few years ago, RTD's other positive credit features include the economic base's sound underpinnings, effective utilization of debt instruments, and a willingness to increase fares.
The ratings are based on rental income derived from military housing allowances, the demand for affordable rental properties for junior military personnel in San Diego, debt service coverage
levels generated by the project, and the legal structure with respect to the different classes of bonds.
These revenues provide sound debt service coverage
, which along with the system's sizable cash balances evidence sound financial operations.
Credit concerns also include a competitive local gaming environment with four other tribal gaming facilties within 50 miles and reliance upon the successful construction of a hotel and the subsequent boost in gaming activity to achieve an adequate cushion in debt service coverage