Town of Mooresville
CUSIP 616110DC3
- Issue Currency: United States of America Dollars
- Announcement Date: 22-Aug-2018
- News: Moody`s Investors Service has upgraded the rating to Aa2 from Aa3 on the Town of Mooresville, NC`s $55.1 million Enterprise System Revenue bonds. RATINGS RATIONALE The upgrade to Aa2 reflects the growing size and diversity of the service area`s economic base, strong management practices including comprehensive fiscal policies, an active pay-go capital improvement program, regular rate reviews and long term planning. The rating also incorporates ample debt service coverage (2.5 times) and liquidity level (1,252 days cash on hand). Legal provisions are satisfactory with no debt service reserve requirement which is offset by maintenance of healthy reserves.
- Issue Currency: United States of America Dollars
- Announcement Date: 26-Feb-2019
- News: S&P Global Ratings raised its long-term rating on the Town of Mooresville, N.C.`s water and sewer revenue bonds outstanding to `AA+` from `AA`. The outlook is stable. The upgrade reflects our view of management`s operational and financial policies that have enabled the system to generate consistently strong coverage and liquidity levels. The rating reflects our opinion of the town`s extremely strong enterprise and financial risk profiles. The final rating is notched down to reflect increasing demand pressures, which may disrupt coverage, liquidity, and or the system`s debt burden. The enterprise risk profile reflects our view of the system`s: Service area participation in the broad and diverse Charlotte-Concord-Gastonia, N.C. metropolitan statistical area (MSA); Very low industry risk as a monopolistic service provider of an essential public utility; Affordable rates, representing 1.7% of median household effective buying income (MHHEBI); and Good operational management practices and policies. The financial risk profile reflects our view of the system`s: Very strong historical all-in debt service coverage (DSC) that we believe the utility will continue to produce in the near term; Extremely strong liquidity position that we believe is sustainable in the near term, despite potentially being drawn down because of the town using some of the utility`s cash reserves to fund a portion of system capital needs; Moderate leverage based on a debt-to-capitalization ratio of about 34%, with no additional debt plans in the near term; and Good financial management practices and policies
- Issue Currency: United States of America Dollars
- Announcement Date: 26-Feb-2019
- News: S&P Global Ratings raised its long-term rating on the Town of Mooresville, N.C.`s water and sewer revenue bonds outstanding to `AA+` from `AA`. The outlook is stable. The upgrade reflects our view of management`s operational and financial policies that have enabled the system to generate consistently strong coverage and liquidity levels. The rating reflects our opinion of the town`s extremely strong enterprise and financial risk profiles. The final rating is notched down to reflect increasing demand pressures, which may disrupt coverage, liquidity, and or the system`s debt burden. The enterprise risk profile reflects our view of the system`s: Service area participation in the broad and diverse Charlotte-Concord-Gastonia, N.C. metropolitan statistical area (MSA); Very low industry risk as a monopolistic service provider of an essential public utility; Affordable rates, representing 1.7% of median household effective buying income (MHHEBI); and Good operational management practices and policies. The financial risk profile reflects our view of the system`s: Very strong historical all-in debt service coverage (DSC) that we believe the utility will continue to produce in the near term; Extremely strong liquidity position that we believe is sustainable in the near term, despite potentially being drawn down because of the town using some of the utility`s cash reserves to fund a portion of system capital needs; Moderate leverage based on a debt-to-capitalization ratio of about 34%, with no additional debt plans in the near term; and Good financial management practices and policies.
