Moody’s Ratings upgraded $3.02 billion in
The broad nature of the revenue pledge and strong 2.4 times maximum annual debt service coverage supported the upgrade, the agency said. The revenues have had limited volatility and a 10-year average growth rate of 6.2%.
The transit sales surtax bonds had $2.12 billion outstanding as of Sept. 30, 2023, according to Moody’s.
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The convention development tax bonds, also known as subordinated special obligation bonds, upgrade reflects the somewhat broad pledge of the hotel stay taxes and a secondary pledge of available sales taxes supporting them, Moody’s said. The sales taxes are pledged but there is no lien until they are deposited in the debt service fund.
The Aa3 rating of the CDT bonds also stems from a MADS coverage greater than three times.
The transit sales surtax bonds gain revenue from 80% of the countywide 0.5% sales tax on transactions up to $5,000.
The convention development tax bonds are serviced by a lien on two-thirds of the receipts of the CDT tax received by the county, which is 3% of the charge for the rental of transient accommodations.
The transit sales tax bonds are rated AA by S&P Global Ratings and Fitch Ratings. The CDT bonds are rated A-plus by S&P and Fitch.
Moody’s said the upgrades stem from its updated U.S. cities and counties methodology.
Moody’s upgraded three other Florida municipal sales tax bonds since Sept. 19 as a result of updated methodologies —
Additionally, Moody upgraded Tampa’s utility tax bonds to Aa1 from Aa3 and Collier County’s special tax (hotel stay tax) bonds to Aa1 from Aa3.
Moody’s upgraded various