Dakota County Community Development Agency, MN GO Housing Development Bond Rating Raised To 'AAA' On Stronger Finances

CHICAGO (S&P Global Ratings) April 2, 2019--S&P Global Ratings raised its 
long-term rating to 'AAA' from 'AA+' on Dakota County Community Development 
Agency (CDA), Minn.'s series 2010A-D and 2013 general obligation (GO) housing 
development bonds, which are supported by Dakota County's GO pledge. The 
outlook is stable. 

"The upgrade reflects the county's extremely strong and growing economic base, 
very strong financial position, low debt profile, and very strong management 
team, which we believe will actively manage any future debt service payments," 
said S&P Global Ratings credit analyst Cora Bruemmer. In 2015, we lowered our 
rating on the county to 'AA+' resulting from an interest payment that was to 
be paid as part of the early redemption of debt that was made seven days late 
due to an administrative error (for more on that rating action, see our report,
 published March 19, 2015, on RatingsDirect). Since that time, the county's 
credit fundamentals have strengthened, all debt service benefiting from the 
county's GO pledge has been paid on time and in full, and it maintains debt 
payment procedures that we believe will mitigate the risk of any future late 
payments. We believe it is extremely unlikely that such a late payment will 
occur again.

A pledge of the county's full faith credit and power to levy direct ad valorem 
property taxes without limitation as to rate or amount secure the bonds. The 
bonds are additionally secured by a pledge of program revenues of the CDA, but 
we rate to the GO pledge. 

Dakota County, with an estimated population of 419,275 over 587 square miles, 
is in the southeastern portion of the Minneapolis-St. Paul-Bloomington 
metropolitan area, which we consider to be broad and diverse. It includes all 
or portions of 21 cities and 13 townships. Some of the larger cities include 
Eagan, Burnsville, Lakeville, and Apple Valley.

"The stable outlook reflects our view of Dakota County's very strong credit 
fundamentals, which include a robust and growing economy, strong financial 
performance, very strong management team, and low debt profile with no near 
term debt plans," added Ms. Bruemmer. We do not expect a rating change within 
the two-year outlook horizon.
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