City of Orem, Utah
CUSIP 68611RBF4
- Issue Currency: United States of America Dollars
- Announcement Date: 03-Jul-2018
- News: Fitch Ratings has upgraded to `AAA` from `AA+` the following Orem, UT (the city) obligations: --Approximately $5.1 million water and storm sewer revenue refunding bonds, series 2016. The Rating Outlook is Stable. SECURITY The bonds are secured by net water and storm sewer system (the system) revenues after payment of maintenance and operations expenses.
- Issue Currency: United States of America Dollars
- Announcement Date: 13-Jul-2018
- News: Fitch Ratings has upgraded to `AAA` from `AA+` the following Orem, UT (the city) obligations: --Approximately $5.1 million water and storm sewer revenue refunding bonds, series 2016. The Rating Outlook is Stable. SECURITY The bonds are secured by net water and storm sewer system (the system) revenues after payment of maintenance and operations expenses. KEY RATING DRIVERS IMPROVED OPERATING MARGINS DRIVE UPGRADE: Rate increases in recent years have increased operating revenue, improving free cash flow (FCF) that is expected to support increased capital spending and generate debt service coverage over 6.0x. FAVORABLE DEBT PROFILE: Debt metrics are stronger than similarly rated systems and amortization is rapid. The debt burden will continue declining as the city has no plans to issue additional water and storm sewer bonds over the next five years.
- Issue Currency: United States of America Dollars
- Announcement Date: 13-Jul-2018
- News: Fitch Ratings has upgraded to `AAA` from `AA+` the following Orem, UT (the city) obligations: --Approximately $5.1 million water and storm sewer revenue refunding bonds, series 2016. The Rating Outlook is Stable. SECURITY The bonds are secured by net water and storm sewer system (the system) revenues after payment of maintenance and operations expenses. KEY RATING DRIVERS IMPROVED OPERATING MARGINS DRIVE UPGRADE: Rate increases in recent years have increased operating revenue, improving free cash flow (FCF) that is expected to support increased capital spending and generate debt service coverage over 6.0x. FAVORABLE DEBT PROFILE: Debt metrics are stronger than similarly rated systems and amortization is rapid. The debt burden will continue declining as the city has no plans to issue additional water and storm sewer bonds over the next five years.