PORT AUTHORITY RATING TO “A-” FOR NORTHWEST OHIO BOND FUND
TOLEDO, Ohio, June 3, 2014 – Standard & Poor’s (S&P) recently announced an upgrade to the Toledo-Lucas County Port Authority’s Northwest Ohio Bond Fund rating from a “BBB+” to an “A-” investment-grade rating with a stable outlook.
“We are very excited to report on this historic upgrade to our Northwest Ohio Bond Fund, which is the first time in its 26-year history that we have achiev
STANDARD & POOR’S UPGRADES
PORT AUTHORITY RATING TO “A-” FOR NORTHWEST OHIO BOND FUND
TOLEDO, Ohio, June 3, 2014 – Standard & Poor’s (S&P) recently announced an upgrade to the Toledo-Lucas County Port Authority’s Northwest Ohio Bond Fund rating from a “BBB+” to an “A-” investment-grade rating with a stable outlook.
“We are very excited to report on this historic upgrade to our Northwest Ohio Bond Fund, which is the first time in its 26-year history that we have achieved a rating in the “A” Category,” said Paul Toth, President and CEO of the Toledo-Lucas County Port Authority. “By being recognized as an “A-” investment-grade rated bond fund, we are now able to offer more competitive rates for borrowers looking for long-term fixed-rate financing.”
The Port Authority’s Northwest Ohio Bond Fund was established in 1988, and has allowed the Port Authority to help finance new business and business expansion in northwest Ohio. Its portfolio of projects includes Owens Corning, HCR Manor Care, Dana Holding Corporation, Nagle Trucking, Toledo School for the Arts, and many other local and regional companies.
The Northwest Ohio Bond Fund provides financing for projects from $2 million to $9 million, and fixed interest rates for the full term of bonds. A typical transaction is usually 90% financing and 10% equity. The fund typically provides up to 20-year financing for land and (owner-occupied) building projects, and financing up to 10 years for equipment. The Northwest Ohio Bond Fund issues tax-exempt bonds for manufacturing, non-profit 501(c)3 and governmental operations, and taxable bonds for all other projects.
Key factors contributing to the S&P “A-” upgrade include a zero percent default rate to bondholders that have provided over $250 million in bond financing for sixty-four (64) projects since the inception of the Northwest Ohio Bond Fund. In addition, the Northwest Ohio Bond Fund has a current reserve-to-loan ratio of 50 percent, made possible by contributions from Ohio Manufacturers Association and Lucas County, the latter of which provided a $2 million investment in 2011 to help the Port Authority achieve this goal. Read more.