KBRA Assigns AAA Rating to City of Dublin (OH) General Obligation (Limited Tax) Various Purpose Improvement and Refunding Bonds, Series 2024
16 Julio 2024 - 5:32PM
Business Wire
The AAA long-term rating for the City of Dublin, Ohio’s (the
“City” or “Dublin”) General Obligation (Limited Tax) Various
Purpose Improvement and Refunding Bonds, Series 2024 (the “Bonds”)
reflects the City’s diverse and growing tax base, characterized by
strong wealth and employment levels, conservative City budgeting
and financial management practices, with ample liquidity and
manageable long-term liabilities. The Outlook is Stable.
Key Credit Considerations
The rating was assigned because of the following key credit
considerations:
Credit Positives
- Conservative budgetary practices, sound fiscal policies and
strong financial performance which support ample reserves and
financial flexibility.
- Main source of repayment for the Bonds is income tax receipts,
which have benefitted from a vibrant, strong economic base in
Dublin with an above average sociodemographic profile, and close
proximity to the State’s capital (Columbus, OH).
- A comprehensive five-year capital plan, with significant
reinvestment and development to support tax base growth, with a
dedicated capital funding source and modest new debt requirements
(13% debt funded capex).
Credit Challenges
- Potential for volatility in income tax receipts as affected by
the level of economic and employment growth in the city and the
uncertain impact of remote work on commuting employees.
- Elevated debt levels per capita, although somewhat moderated by
the higher population of nonresident workers, and solidly growing
tax base.
Rating Sensitivities
For Upgrade
- No positive rating sensitivities given the highest debt rating
level.
For Downgrade
- Significant decline in unrestricted reserves, in particular the
Unassigned General Fund Balance relative to General Fund
expenditures, to below historic levels.
- Declining trend in income tax receipts and/or material increase
in debt requirements that pressure the ad valorem ten-mill property
tax limitation.
To access rating and relevant documents, click here.
Methodologies
- Public Finance: U.S. Local Government General Obligation Rating
Methodology
- ESG Global Rating Methodology
Disclosures
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1005135
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Analytical Contacts
Lina Santoro, Director (Lead Analyst) +1 646-731-1419
lina.santoro@kbra.com
Peter Scherer, Senior Director +1 646-731-2325
peter.scherer@kbra.com
Mallory Yu, Senior Analyst +1 646-731-1380
mallory.yu@kbra.com
Harvey Zachem, Managing Director (Rating Committee Chair) +1
646-731-2385 harvey.zachem@kbra.com
Business Development Contacts
William Baneky, Managing Director +1 646-731-2409
william.baneky@kbra.com
James Kissane, Senior Director +1 646-731-2380
james.kissane@kbra.com