Fitch Ratings has affirmed the following ratings for
Long-Term Issuer Default Rating (IDR) at '
The Rating Outlook is Stable.
RATING ACTIONS
Entity / Debt
Rating
Prior
LT IDR
Affirmed
LT
Affirmed
LT
AA+
Affirmed
AA+
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VIEW ADDITIONAL RATING DETAILS
SECURITY
The spring training facility revenue bonds are limited obligations of the county, secured by a first lien on a statutory annual distribution of funds from the
ANALYTICAL CONCLUSION
The 'AA+' rating on the spring training facility revenue bonds is based on Fitch's dedicated tax analysis and the structure's resilience to pledged revenues through economic cycles. The current pledged revenue supporting the bonds is the county's annual receipt of
Sales taxes are the state's largest revenue source, approximating approximately
The bonds are now only payable from the statutory payment from the state's general revenue fund, following the release of the originally pledged TDT and half-cent sales tax revenues in 2021. The rating on the bonds is the lower of one-notch below the state IDR or the county's IDR, which are both '
The county's '
Economic
KEY RATING DRIVERS
Revenue Framework: 'aa'
Fitch expects future revenue growth will continue to trend between long-term expectations for national GDP and inflation as the tax base and population is experiencing strong growth. The county has considerable legal revenue raising ability with current millage rates well below the 10-mill statutory limit.
Expenditure Framework: 'aa'
The county's pace of spending is expected to be in line with or marginally above revenue growth trends in the absence of policy action. Fixed carrying costs associated with debt and retiree benefits are moderate, and the county's ability to cut spending through the economic cycle is solid.
Long-Term Liability Burden: 'aaa'
County debt and net pension liabilities are very low, estimated at around 2% of personal income. Liabilities are expected to remain low based on the county's participation in the Florida Retirement System (FRS), a modest level of additional debt issuance plans and rapid repayment of outstanding debt.
Operating Performance: 'aaa'
Fitch expects the county to maintain significant financial resilience in the event of a moderate economic downturn. The county has ample gap-closing ability provided by its historically strong reserves and a superior level of inherent budget flexibility.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
For the IDR, positive rating action is not applicable as '
For the spring training facility bonds, positive rating action is not applicable as the bonds are capped at
'AA+', one notch below the
Factors that could, individually or collectively, lead to negative rating action/downgrade:
For the IDR, material erosion in gap-closing capacity due to sustained revenue declines or a reduction in the county's expenditure flexibility;
Expectations for weakening of revenue growth prospects to a level below inflation;
For the spring training facility bonds, a downgrade of state of
CURRENT DEVELOPMENTS
The county has experienced continued improvement in its tax base and strong population growth the past several years and has prudently managed changes in revenues to meet expenditure growth. The county ended fiscal year 2022 (ended
Management reported preliminary results for fiscal 2023 that project a general fund net operating surplus after transfers of approximately
The fiscal year 2024 adopted general fund budget of
The county has demonstrated robust financial management by maintaining ample reserves. Despite modest operating deficits that occurred from fiscal years 2015 through 2017, the county's unrestricted reserve levels have remained in excess of 44% of total expenditures (after transfers).
In
County voters approved the extension of the optional sales tax beginning
CREDIT PROFILE
The local economy of
Spring Training Facility Bonds - Key Rating Factors
Strong Resilience and Solid Revenue Growth: The spring training facility bonds are ultimately supported by the state's distribution of the guaranteed entitlement to all counties from the state's available sales and use tax revenues. State sales and use tax collections are ample, with fiscal 2022 net adjusted sales tax revenues of over
Capped by State and County Ratings: The spring training facility bonds are capped at the lower of the county's IDR (AAA) or one notch below the state of
In addition to the sources of information identified in Fitch's applicable criteria specified below, this action was informed by information from
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
Additional information is available on www.fitchratings.com
PARTICIPATION STATUS
The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issu
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Fitch Ratings -
The rating action follows the completion of
Prior to the closing of the deal,
Following the close of the acquisition, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings (or analytical coverage) for SRC.
Key Rating Drivers
Key Rating Drivers are not applicable as the ratings have been withdrawn.
Key Assumptions
Key Assumptions are not applicable as the ratings are being withdrawn.
RATING SENSITIVITIES
Rating Sensitivities do not apply as the ratings have been withdrawn.
Issuer Profile
Summary of Financial Adjustments
No material non-standard financial adjustments. Stock based compensation was considered a reduction to SG&A and an addback to EBITDA.
Sources of Information
The principal sources of information used in the analysis are described in the Applicable Criteria.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
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