Summary: Orange County, Florida; Miscellaneous Tax

S&P Global Ratings assigned its 'AA-' long-term rating to Orange County, Fla.'s series 2017 tourist development tax (TDT) revenue bonds, and affirmed its 'AA-' rating on the county's parity debt. The outlook is stable. The bonds are limited obligations of the county secured by its TDT levied at a rate of 4% of each dollar charged for hotel rentals and other short-term accommodations, as well as its fifth-cent tax. The indenture requires the county use TDT proceeds from the first four cents first in the payment of priority expenses (capped at the greater of $400,000 or 1.74% of TDT proceeds for the previous fiscal year) and then debt service. Because the permitted uses of the fifth-cent tax are narrower than

...S&P Global Ratings assigned its '##-' long-term rating to Orange County, Fla.'s series 2017 tourist development tax (TDT) revenue bonds, and affirmed its '##-' rating on the county's parity debt. The outlook is stable. The bonds are limited obligations of the county secured by its TDT levied at a rate of 4% of each dollar charged for hotel rentals and other short-term accommodations, as well as its fifth-cent tax. The indenture requires the county use TDT proceeds from the first four cents first in the payment of priority expenses (capped at the greater of $400,000 or 1.74% of TDT proceeds for the previous fiscal year) and then debt service. Because the permitted uses of the fifth-cent tax are narrower than those of the TDT--as outlined in section 125.0104, Florida Statutes--the pledged fifth-cent tax proceeds are deposited into a separate fund. Should these two revenue streams prove insufficient to cover debt service, the pledge also includes several other smaller revenue streams. The...

Summary