Fitch Ratings assigned an A+ rating to the city of San Diego Redevelopment Agency’s $69 million in tax allocation housing bonds that will be issued through the Centre City Development Corp. this year, Fitch said April 16.
The taxable bonds will be used to subsidize various privately financed low and moderate income housing projects in the downtown core area, with designated debt service coming from tax increment funds generated within the area.
The rating reflects the sound debt service coverage provided by pledged tax increment revenue for all securities, very strong revenue stability, and San Diego’s and the project area’s economic diversity and growth potential, Fitch said.
The rating service also affirmed ratings on outstanding debt in the Centre City project area including A+ on $67.8 million in parity tax allocation housing bonds; A+ on $88.9 million in subordinate tax allocation bonds; and A- on $18.2 million in subordinate parking bonds.
, Mike Allen