Corporate Social Responsibility | Business Wire | PR NewsWire | Marketwire | Realwire | ACN/JCN newswire | 247pressrelease | PRWeb

Fitch Downgrades Hodgkins, Illinois' TIF Revs to 'BBB'; Outlook Stable

Posted : Mon, 02 Nov 2009 18:44:36 GMT
Author : Fitch Ratings
Category : Press Release
News Alerts by Email ( click here )
News | Home
NEW YORK - (Business Wire) During the course of routine surveillance, Fitch Ratings downgrades the rating on the Village of Hodgkins, Illinois' approximately $13.6 million outstanding tax increment refunding revenue bonds, series 2005 to 'BBB' from 'A-'. The Rating Outlook is Stable.

The downgrade reflects the volatility of the retail industry and potential for weak sales tax revenues, especially given the current economic decline. The 'BBB' rating reflects the established history of incremental revenue growth generated by the village's redevelopment project area number 1 (TIF area or the district) and solid debt service coverage. Sound district sales, already supported by high tenant occupancy; favorable economic characteristics of the market area; and limited competition, are expected to be further stabilized by the expansion of Wal-Mart, an anchor tenant. The rating also reflects the high although fluid reserves, a very narrow revenue base, and the relatively near-term maturity of the outstanding debt. The Stable Rating Outlook assumes the maintenance of projected coverage ratios and the sustained demand for the district's retail offerings.

The Village of Hodgkins, population 2,134 in 2000, lies 18 miles southwest of downtown Chicago, in close proximity to major roadways. The district consists of the Quarry Shopping Center and adjacent auxiliary facilities. In addition to Hodgkins, the center serves a marketing area consisting of all or portions of 12 surrounding municipalities with above average wealth indicators. Competition throughout the market area is limited.

Anchor stores of the retail center include Wal-Mart and Sam's Club, Target, and Kohl's. A Wal-Mart expansion, anticipated to be completed in April, is expected to further stabilize the center. The center is currently nearly fully occupied. Out-lot facilities include four General Motors automobile dealerships, one of which was awarded a three-year contract earlier this year to provide police cars to the city of Chicago.

The bonds are payable solely from incremental property and sales taxes collected within the district. Debt service coverage has been solid, at 3.3 times (x) in 2007 and 3.6x in 2008. Although the current softening of the retail sector will likely result in a decline in the local share of the incremental sales tax, it is projected that the state share will increase slightly, given that the distribution will be linked to the district's concentration in a revenue pool, which has recently increased. The property tax receipts consist of revenues generated by the combined tax rate of the village and overlapping and underlying jurisdictions applied against the incremental property created value within the district, and incremental property tax collections have increased from 2006 to 2008 on an accrual basis. The district loses incremental property taxes attributable to overlapping jurisdictions after fiscal 2010 but maintains the incremental property tax attributable to the village, as well as the incremental sales taxes. Conservative projections indicate coverage ranging from 2.4x to 3.0x through the maturity of the bonds in 2014, and coverage remains sound even upon the imposition of a stress test that assumes both property and sales tax revenue declines. Additional financial flexibility is available to the district should it opt to utilize its surplus, valued at around $1.6 million in 2007, which has traditionally been rebated to other taxing bodies.

Additional information is available at 'www.fitchratings.com'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Fitch Ratings, New York
Cindy Stoller, +1-212-908-0526
cindy.stoller@fitchratings.com
Barbara Ruth Rosenberg, +1-212-908-0731
Alexandra Knight, +1-212-908-9181


Copyright © 2008 Business Wire. All rights reserved.
Share/Save/Bookmark

Article : Fitch Downgrades Hodgkins, Illinois' TIF Revs to 'BBB'; Outlook Stable
Print this article
Share this article

Stay Updated

News gadget on your Google homepage
Subscribe to a news feed in Google Reader



Related News

Lady Gaga Tickets to "Monster Ball" Concert Tour Available Online
PALO ALTO, CA -- 11/21/09 -- FanSnap®, the largest live event ticket search engine for fans, today announced that hundreds, and for some concerts, thousands of Lady Gaga ticket listings ca..

MyCatholicVoice Virtual Pilgrimage for NCYC 2009 Engages 50,000 Online Participants from 76 Countries
Available for the first time, online participation with National Catholic Youth Conference demonstrates power of technology in sharing faith experiences; Live streaming of closing liturgy presented 7:00pm-10:30pm Central, Sat. Nov. 21 /I/P PLenexa, KS (PRWEB) November 21, 2009 -- MyCath...

ADDING MULTIMEDIA Nine-Pack of Sun Valley Olympians to Take First Ride on New Roundhouse Gondola
SUN VALLEY, Idaho - Free rides for all will kick off the dedication of Sun Valley Resort’s new Roundhouse Gondola during a Winter Expo and Gondola ‘Ganza Saturday, November 21 at 11 a.m. MT. The grand opening festivities will launch Sun Valley’s 74th

Brambleton Embraces the Spirit of Giving; Jingle Bell Fun Run/Walk Planned for Families
In support of Loudoun County schools, the Brambleton Town Center is working in conjunction with local merchants and the community to again launch its “Spirit of Giving” program./I/P PBrambleton, Loudoun County (Vocus) November 21, 2009 -- In support of Loudoun County schools...

Nine-Pack of Sun Valley Olympians to Take First Ride on New Roundhouse Gondola
SUN VALLEY, Idaho - Free rides for all will kick off the dedication of Sun Valley Resort’s new Roundhouse Gondola during a Winter Expo and Gondola ‘Ganza Saturday, November 21 at 11 a.m. MT. The grand opening festivities will launch Sun Valley’s 74th

Video B-Roll available via CNW - Australian Gold Medalist Alisa Camplin runs with the Torch and enjoys true northern experiences in Dawson City, Yukon
VANCOUVER, Nov. 21 /PRNewswire/ - Australian aerial skier Alisa Camplin couldn't have been more excited as she explored Canada's North and ran with the Olympic Torch in the Yukon. Alisa enjoyed an aut...

River Blindness (Onchocerciasis) Reduced By Nearly One-Third In At-Risk Populations In Six Countries
WASHINGTON, Nov. 21 /PRNewswire-USNewswire/ -- A regional initiative launched in the 1990s to eliminate onchocerciasis (river blindness) in the Americas has substantially reduced the prevalence of the disease in recent years, as evidenced by a 31% decrease in the number of individuals r...

Have your Say
Name
Email
Subject
Your Comment

Enter Verification code
 
  

 
Follow The Earth Times
Subscribe to RSS Follow Earth Times on TwitterNews by email
Share/Save/Bookmark
 
 



 
Subscribe to free Earthtimes
News Alerts by Email Click here
For RSS Feeds Click here
or Create your own RSS

Add to Google Toolbar
Breaking News
Press Releases

 


The Earth Times
News Category

© 2009 www.earthtimes.org, The Earth Times, All Rights Reserved | Privacy Policy
Earth Times accept no responsibility or liability either directly or indirectly for views or opinions expressed in articles or comments.