Guam; Miscellaneous Tax May 09
Standard & Poors, May 2009
Abstract
Standard & Poor's Ratings Services assigned its 'BBB-' rating to the Government of Guam's (GovGuam) $202.425 million limited-obligation (Section 30) bonds, series 2009A. The rating reflects our view of the following credit weaknesses: Concentration in income taxes. Despite the positive impacts expected to result from the pending military buildup in Guam, medium-to-long-term exposure exists with regard to potential future military downsizings or base closures in Guam, given that active military federal income tax withholdings account for approximately 65% pledged revenues (as of 2007); Credit exposure to GovGuam as a speculative-grade ('B+' general obligation rating) entity, given that the bonds' security structure cannot completely isolate GovGuam's bondholders from the territory's financial condition; The possibility that a future U.S. Congress could change...
Companies mentioned in this report are: Guam
Action: New Rating
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
Guam
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