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Standard & Poors Corporation
A Standard & Poor’s corporate or municipal debt rating is a current assessment of the creditworthiness of an obligor with respect to a specific obligation. This assessment may take into consideration obligors such as guarantors, insurers, or lessees.
The debt rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment as to market price or suitability for a particular investor.
The ratings are based on current information furnished by the issuer or obtained by Standard & Poor’s from other sources it considers reliable. Standard & Poor’s does not perform any audit in connection with any rating and may, on occasion, rely on unaudited financial information. The ratings may be changed, suspended or withdrawn as a result of changes in, or unavailability of, such information, or for other circumstances.
The ratings are based, in varying degrees, on the following considerations:
- Likelihood of default-capacity and willingness of the obligor as to the timely payment of interest and repayment of principal in accordance with the terms of the obligation;
- Nature of and provisions of the obligation;
- Protection afforded by, and relative position of, the obligation in the event of bankruptcy, reorganization or other arrangement under the laws of bankruptcy and other laws affection creditors’ rights.
Standard & Poors Corporation:
Write-up Regarding the City of Indianapolis
The outlook by Standard & Poor’s for the Indianapolis Local Public Improvement Bond Bank’s Bonds are: STABLE and anticipates continued economic growth and strong financial management. The rating on Indianapolis Local Public Improvement Bond Bank, Ind.’s bonds reflects the city of Indianapolis’ full faith and credit pledge backing payment of the qualified obligations and the city’s general credit characteristics, which include continued economic diversification; strong financial operations and reserve levels; and moderately high debt levels.
Financial operations remain strong. The city has recorded five consecutive surpluses while keeping property tax rates at steady or declining levels over the past decade. Unreserved general fund balances are $105 million, or 33% of expenditures at Dec. 31, 1999. Year-to-date fiscal 1999 operations are at budgeted levels. Manageable police, fire, and municipal employee contracts (2.8%-4%) are expected to make budgeting predictable. Debt levels are high at about 19% of operating funds, due largely to amortization costs associated with the Circle Center Mall financing. Debt burden, however, is manageable at $1,600 per capita basis and 4.9% of true value.
Capital needs over the next four years total $320 million with the majority of spending on transportation related projects. Funding is expected from a combination of current spending ($130 million), federal monies ($141 million), and other sources ($84 million)
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