Fitch Affirms Indianapolis, IN's GOs at 'AAA'; Outlook Stable
8.8.11

BUSINESS WIRE

As part of its continuous surveillance effort, Fitch Ratings affirms the implied general obligation (GO) rating of the City of Indianapolis, IN at 'AAA'. As a result, it is affirming its 'AAA' rating on the following Indianapolis Local Public Improvement Bond Bank (bond bank) revenue bonds:
--$76.7 million taxable bond bank bonds series 2005A.
The Rating Outlook is Stable.
KEY RATING DRIVERS:
--The City of Indianapolis-Marion County's (the city) strong management team has prudently managed the reduction in tax revenues as a result of the state wide circuit breaker legislation and changes in assessed valuation methodologies.
--The city maintains an above-average level of reserves which will help mitigate the financial pressure that persists in fiscal years 2011 and 2012 as income tax revenues are expected to be down from prior years.
--The city's economy remains diverse and continues to experience growth through new commercial development.
--Overall debt levels are moderate, and the state's takeover of a portion of pension liabilities and manageable retiree healthcare obligations help balance the debt profile.
--Unemployment levels are slightly below state averages and wealth indicators remain generally below average.
SECURITY:
The bonds are limited obligations of the bond bank, which under Indiana law, is empowered to buy and sell securities of qualified entities such as the city, all special taxing districts in the city, and all entities with tax levies reviewed by the city council. The bond bank itself has no taxing power. The bonds are not general obligations of the city, but the underlying qualified obligation purchased by the bond bank with proceeds of the bonds is supported by the general obligation and unlimited ad valorem tax pledge of the city of Indianapolis which Fitch rates 'AAA'.
CREDIT PROFILE:
Indianapolis is the state's capital city and with 820,445 residents, it is the 13th largest by population in the nation. The Indianapolis economy is well diversified and includes pharmaceutical production, health services, life and sciences companies, manufacturing and other business and professional services companies which continue to lead the employment and city's industrial output. Development in the city has been ongoing increasing the city's ability to generate tax revenues and increase employment opportunities. The city's population has grown 5% since 2000 equivalent to the county growth and slightly below the state's increase of 6.6% for the same period. Wealth levels for the city approximate county and state averages but represent just 88% of national averages.
http://www.istockanalyst.com/business/news/5345031/fitch-affirms-indianapolis-in-s-gos-at-aaa-outlook-stable#