CA's Debt Burden "Manageable"

From CA:

Moody’s Investors Service (Moody’s) reviewed and affirmed the “Aa2” rating on the Columbia Association’s (CA) Senior Secured Bonds. A press release from Moody’s, dated December 1, 2009, lists three primary reasons for its strong rating, including CA’s “suburban center benefits from strategic geographic position” which has been less impacted by the global recession in comparison to other parts of the country; CA’s “financial position anchored by solid coverage of senior secured debt” and supported by comprehensive fiscal planning and steady growth of the assessable base; and “debt burden to remain manageable” with CA’s adherence to debt management guidelines, ongoing assessment growth and aggressive bond repayment.

Moody’s describes their review as “routine surveillance” on the $32 million outstanding Senior Secured Bonds. Moody’s last reviewed CA’s rating in January 2005 when they upgraded it to an “Aa2” from an “Aa3”.

CA’s Senior Secured Bonds are payable from an annual assessment of up to $0.75 per $100 of assessed valuation on all assessable residential; commercial; and industrial land and improvements in Columbia. The adopted annual charge for FY2010 is $0.68, a savings of over 9% to Columbia residents and commercial property owners.