Palm Bay, FL 2015 Bond Rating Raised To 'AA-' On Application Of Criteria

BOSTON (S&P Global Ratings) Feb. 4, 2019--S&P Global Ratings raised its 
underlying rating to 'AA-' from 'A+' on Palm Bay, Fla.'s series 2015 sales tax 
revenue refunding bonds. The outlook is stable.

"The rating action is due to the implementation of our new 'Priority Lien' 
criteria," said S&P Global Ratings credit analyst Christian Richards, "and we 
rate the 2015 bonds under our 'Priority-Lien Tax Revenue Debt' criteria which 
factors in both the strength and stability of the pledged revenues, as well as 
the general credit quality of the municipality where taxes are distributed 
and/or collected (the obligor's creditworthiness [OC])." The criteria were 
published Oct. 22, 2018, on RatingsDirect. (For more information on the Palm 
Bay's general credit quality, see our summary analysis on the issuer credit 
rating (ICR) on Palm Bay, published Dec. 5, 2018.)

Securing the series 2015 bonds is the city's pledge of the local government 
half-cent sales tax revenue. The 2015 bonds were originally issued to refund 
outstanding debt. 

"Palm Bay has exhibited general financial stability, with stable and growing 
economic fundamentals," said Mr. Richards. 

Palm Bay, with a population 113,410, is in Brevard County

"The stable outlook reflects our view that MADS and debt service coverage will 
maintain coverage at least consistent with recent years, given the lack of 
additional debt plans and increasing revenues," added Mr. Richards.