Summary: Monroe, Louisiana; Tax Increment

S&P Global Ratings affirmed its 'A' underlying rating (SPUR) on Monroe, La.'s sales tax increment revenue debt issued for the Garrett Road Economic Development Area. The outlook is stable. The sales tax increment bonds have been analyzed based on the application of our "Special-Purpose Districts" criteria, published June 14, 2007 on RatingsDirect, and our "Principles of Credit Ratings" criteria, published Feb. 16, 2011. Incremental sales tax revenue generated within the Garrett Road Economic Development Area secures the bonds. Pledged revenue is 40% the incremental state sales tax (levied at 4%) and 60% the incremental city sales tax (levied at 2.5%) within the development area. Although the city primarily uses the revenue generated by the state tax to make debt service

...S&P Global Ratings affirmed its 'A' underlying rating (SPUR) on Monroe, La.'s sales tax increment revenue debt issued for the Garrett Road Economic Development Area. The outlook is stable. The sales tax increment bonds have been analyzed based on the application of our "Special-Purpose Districts" criteria, published June 14, 2007 on RatingsDirect, and our "Principles of Credit Ratings" criteria, published Feb. 16, 2011. Incremental sales tax revenue generated within the Garrett Road Economic Development Area secures the bonds. Pledged revenue is 40% the incremental state sales tax (levied at 4%) and 60% the incremental city sales tax (levied at 2.5%) within the development area. Although the city primarily uses the revenue generated by the state tax to make debt service payments, city revenue is legally available as well. In prior reviews, we incorrectly applied solely our special purpose district criteria to these bonds, when we should have also applied our "Principles of Credit Ratings"...

Summary