Missouri Bonds (Missouri Municipal Bonds)
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- capital improvements
Under the American Economic Recovery and Reinvestment Act of 2009, the state of Missouri created a new form of bonds known as Recovery Zone Bonds. These Missouri bonds can be used to finance certain purposes and properties that come under the designated recovery zones.[br]
The Recovery Zone Bonds are of two types:
Recovery Zone Economic Development Bonds: These bonds can be used by political subdivisions for:
- capital improvements
- capital acquisitions
Recovery Zone Facility Bonds: These bonds can be used to finance new capital improvements that are owned and used by almost any business activity, located in the recovery zone.
Under the Act, only 112 Missouri counties and four cities have received fund allocations and they need to use these funds by the end of 2010.
Missouri Bonds and Their Profile
Ratings for roughly $600 million outstanding general obligation (GO) bonds issued by the state of Missouri were reiterated at ‘AAA’ by Fitch Ratings in September 2009. The rating reflected superior bondholder security derived from the state’s conservative approach to debt and long record of well-managed and balanced financial operations.
Some of the Missouri bonds are:
$23.5 million water pollution control and drinking water revenue bonds, series 2005B: These bonds were issued by the Missouri State Environmental Improvement and Energy Resources Authority (EIERA) in October 2005. The proceeds from the bond sale were used to refund portions of debt associated with 16 pool participants. The authority expected the refunding to generate net value savings of $1.2 million or 4.9% of refunded bonds. These savings were to be credited to the borrowers.
These state road bonds were payable through:
· Revenues generated by various highway user fees and taxes.
· A part of sales tax on motor vehicle deposited in the state road bond fund.
Industrial Development Authority of St Joseph $142.8 million health facilities revenue bonds: These bonds were issued on behalf of Heartland Health (Heartland) and insured by Ambac Assurance Corp. Fitch Ratings affirmed the ‘A’ rating and Stable Rating Outlook for these bonds in May 2007. This reflects Heartland’s leading market position, substantial operating profitability and debt service coverage.
Heartland’s strengthening liquidity and manageable debt burden was also factored in the rating.
