TEXT-Fitch Affirms Municipal Finance Auth of British Columbia, Canada at 'AAA'; Outlook Stable
NEW YORK, February 28 (Fitch) Fitch Ratings affirms the 'AAA' rating on the outstanding long-term obligations of the Municipal Finance Authority of British Columbia, Canada (MFABC, or the authority), consisting of:
-Approximately $6.3 billion in senior unsecured debentures.
The Rating Outlook is Stable.
The debentures are direct and unconditional unsecured obligations. The authority has a debt reserve fund pledged to debenture holders and the authority retains the power to impose ad valorem taxes without limitation on all taxable property in the province to maintain the debt reserve fund.
KEY RATING DRIVERS
-- BROAD TAXING AUTHORITY AND LEGAL PLEDGE: The 'AAA' rating is based on the strength of MFABC's ability to levy a province wide property tax as needed to replenish the debt reserve fund, as well as the joint and several liability of participating regional districts for the debt of their municipalities.
--CONSERVATIVE MANAGEMENT: The authority's legal structure, careful oversight, stringent monitoring of municipal credit conditions and regimented credit approval process all support well-organized debt financing. Continued...