Fitch assigns its 'AA-' rating to El Paso (the city), Texas' $100 million taxable general obligation pension bonds (GOs), series 2007 and $110 million taxable GO pension bonds, series 2007A. The series 2007 bonds are scheduled to sell on June 19 via negotiation through a syndicate led by Banc of America Securities LLC. The series 2007A bonds will be sold on a forward delivery basis in July 2009 and are scheduled to sell on July 10 via negotiation through a syndicate led by Citibank. In addition, Fitch affirms its 'AA-' rating on the city's outstanding debt comprised of $438.3 million GO bonds and $111.2 million certificates of obligation. The Rating Outlook is Stable.
The GOs are direct obligations of the city and are payable from the levy and collection of a direct and continuing ad valorem tax, limited to $2.50 per $100 taxable assessed valuation (TAV), on all taxable property within the city. Proceeds of both GO pension bond offerings will be used to partially fund the unfunded actuarial accrued liability in the city's firemen and policemen pension fund and to pay issuance costs. Proceeds of the GO refunding bonds will be used to refund a portion of the city's outstanding debt.
