Fitch as­signs 'AAA' rat­ing to Colorado bonds


Fitch Rat­ings, a na­tion­ally rec­og­nized sta­tis­ti­cal rat­ing or­ga­ni­za­tion ( NRSRO) des­ig­nated by the U.S. Se­cu­ri­ties and Ex­change Com­mis­sion, as­signed a ' AAA' rat­ing to the bonds is­sued by the Colorado Wa­ter Re­sources and Power De­vel­op­ment Au­thor­ity (CWRPDA, or the au­thor­ity).

This is-Ap­prox­i­mately $17.1 mil­lion drink­ing wa­ter rev­enue bonds, 2017 se­ries A. The bonds are ex­pected to sell via com­pet­i­tive bid on Nov. 2, 2017. Bond pro­ceeds along with other avail­able monies will be used to fund a loan to the town of Breck­en­ridge, CO, to fund re­serves at the re­quired amount, and to pay for the costs of is­suance.

It af­firms its ' AAA' rat­ing on the fol­low­ing CWRPDA out­stand­ing debt: --$107.9 mil­lion se­nior lien drink­ing wa­ter rev­enue bonds; --$9.7 mil­lion sub­or­di­nate lien drink­ing wa­ter rev­enue re­fund­ing bonds; -$222 mil­lion se­nior lien clean wa­ter rev­enue bonds; --$22.1 mil­lion sub­or­di­nate lien clean wa­ter re­fund­ing rev­enue bonds; and--$16.3 mil­lion waste­water re­volv­ing fund rev­enue bonds.

The se­nior lien bonds, in­clud­ing the 2017 se­ries A bonds, are se­cured by pledged loan re­pay­ments, re­serves, funds in cer­tain ac­counts, and ac­count earn­ings. The sub­or­di­nate lien bonds are se­cured by ded­i­cated funds and moneys re­leased af­ter pay­ments are made on se­nior lien debt serv- ice. Fitch's cash flow mod­el­ing demon­strates that CWRPDA's com­bined wa­ter pol­lu­tion con­trol (WPC) state re­volv­ing fund (SRF) and drink­ing wa­ter (DW) SRF pro­gram (the pro­grams) can con­tinue to pay bond debt ser­vice, even with loan de­faults well in ex­cess of Fitch's ' AAA' li­a­bil­ity rat­ing stress hur­dle, as pro­duced us­ing its Port­fo­lio Stress Cal­cu­la­tor (PSC).

Mean­while, Fitch Rat­ings, re­vised Bei­jing Cap­i­tal De­vel­op­ment Hold­ing (Group) Co., Ltd.'s (known by its ab­bre­vi­ated Chi­nese name Shokai Group) Out­look to Neg­a­tive from Stable. Shokai Group's lever­age may de­cline in the sec­ond half of 2017 as the com­pany plans to slow down its land ac­qui­si­tion. Even so, Fitch ex­pects Shokai Group's lever­age to fall be­low 65% only in 2019. How­ever, if it con­tin­ues to be ag­gres­sive in ac­quir­ing land and fails to delever­age in the sec­ond half of 2017, Fitch may con­sider down­grad­ing the home­builder's rat­ings.

Shokai Group's Long-Term For­eign-Cur­rency Is­suer De­fault Rat­ing (IDR) has been af­firmed at ' BBB-', and its se­nior un­se­cured rat­ing and the rat­ings of all out­stand­ing bonds have also been af­firmed at 'BBB-'. The Neg­a­tive Out­look re­flects the Bei­jing-based home­builder's ag­gres­sive land bank­ing, which has re­sulted in a rapid in­crease of its lever­age, as mea­sured by net debt be­fore in­clud­ing guar­an­tees/ad­justed in­ven­tory, to 70% at end-1H17, from 63.2% at end-2016.

Shokai Group's rat­ings are two lev­els above its stand­alone

credit pro­file of ' BB'. The rat­ing up­lift re­flects its mod­er­ate link­age with its par­ent, the State-owned As­sets Su­per­vi­sion and Ad­min­is­tra­tion Com­mis­sion (SASAC) of Bei­jing's mu­nic­i­pal gov­ern­ment, in line with Fitch's Par­ent and Sub­sidiary Rat­ing Link­age cri­te­ria.

More­over, Fitch Rat­ings ex­pects Lendlease Cor­po­ra­tion Lim­ited's (BBB-/Stable) re­cur­ring in­vest­ment earn­ings to re­main strong fol­low­ing the sale of a 25% stake in its Aus­tralian re­tire­ment vil­lage busi­ness.



projects will sup­port growth of funds un­der man­age­ment and, at the same time, new sec­tor op­por­tu­ni­ties, in­clud­ing in­vest­ment in tele­com in­fra­struc­ture as­sets and pri­vate rental schemes, will sup­port its port­fo­lio man­age­ment model. Lendlease's pub­licly stated tar­gets, in­clud­ing a 40%-60% cap­i­tal al­lo­ca­tion to the in­vest­ment seg­ment (fi­nan­cial year end­ing June-2016 (FY16): 52%) and an in­vest­ment-seg­ment EBITDA con­tri­bu­tion to the group of 30%-40% (FY16: 36%), un­der­pin our ex­pec­ta­tion of a con­tin­ued strong re­cur­ring rev­enue stream.

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