Port of Greater Cincinnati Development Authority, OH Bond Rating Raised To 'A-' On Continuing Strong Repayment Trends

NEW YORK (S&P Global Ratings) Feb. 4, 2019--S&P Global Ratings has raised its 
ratings on the outstanding Southwest Ohio Regional Bond Fund bonds to 'A-' 
from 'BBB+'. At the same time, we assigned our 'A-' rating to the Port of 
Greater Cincinnati Development Authority's series 2019A and B development 
revenue bonds, issued for the Southwest Ohio Regional Bond Fund. The outlook 
on the ratings is stable.

Since our last review, the development authority has extended and increased 
its letter of credit (LOC) with Fifth Third Bank to July 1, 2020 and $10 
million, respectively.

"The upgrade reflects our view of the development authority's continued strong 
repayment trends with no delinquencies, additional loan diversification of the 
bond fund that we expect to continue, and a significant increase in the 
pledged reserve balance due to the finance authority increasing its LOC with 
Fifth Third Bank," said S&P Global Ratings credit analyst Scott Garrigan.

Officials intend to use series 2019A bond proceeds to refinance prior bonds, 
while the 2019B bond proceeds will be used to acquire parking facilities in 
downtown Cincinnati.

The total primary reserve balance available, only available on a parity basis 
and excluding nonparity additional reserves, will be $5.9 million after 
deposits are made related to the current bonds and those with closings pending 
(if applicable).

"The stable outlook reflects our expectation that, consistent with historical 
practices, management will continue to increase the amount of pledged reserves 
to levels that do not produce a weaker financial risk score," added Mr. 
Garrigan. Additional reserve fund deposits have represented no less than 10% 
of the loan balance, and management has, at its discretion, periodically added 
amounts to this minimum. We would expect this practice to continue.
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