Posted on: October 5, 2017

Town Receives A1 Credit Rating; Issued Funds to be used for Workforce Housing

The Town of Winter Park recently received their credit assessment from Moody’s Investors Service for $8.4 million of Certificates of Participation (COP), Series 2017 that will be issued in November. Moody’s assigned an A1 rating to the Town’s COPs along with an Aa3 issuer long-term rating. Obligations rated A1 are considered upper grade and are subject to low credit risk while the Aa3 issuer rating are judged to be high quality with minimal risk. 

These COPs will be issued to help fund the Town’s workforce housing apartments, the first workforce housing facility in the county. The annual payments on the COPs will be made primarily through the rental income from the apartment complex.

Moody’s gave several reasons for awarding the Town with this rating, including:

  • The essential nature of the project due to current lack of affordable housing options
  • The Town’s maintenance of robust reserves even during recession
  • Residential income levels being above average
  • Low unemployment rate in Grand County
  • Town management taking steps to reduce the seasonality of the Town’s tax revenue

Moody’s identified a few challenges in their assessment, which revolved around the area economy’s concentration in winter tourism, and the reliance on seasonal tax revenue.

Additional similarly structured COPs may be issued in the next couple years to finance additional workforce housing units.

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