...S&P Global Ratings assigned its '##-' long-term rating to Jeffersonville Redevelopment Authority, Ind.'s series 2017 economic development lease rental refunding bonds issued on behalf of Jeffersonville. At the same time, we affirmed the '##-' long-term ratings on the city's existing debt. The outlook is stable. The series 2017 bonds are secured by lease rental payments made by the Jeffersonville Redevelopment Commission (coterminous with the city) to the Jeffersonville Redevelopment Authority. Lease payments are secured by ad valorem property taxes, and are not subject to annual appropriation. We understand the city forgoes the ad valorem tax levy, and instead pays debt service through tax-increment financing (TIF) revenues, which are also formally pledged to the bonds. We rated the bonds based on the ad valorem property tax pledge. The lease-backed bonds are also subject to abatement risk, though this is mitigated by the presence of replacement cost and business interruption insurance...
