Coverage of maximum annual debt service (MADS) is affected by thetreatment of the federal interest subsidy, assumed with the issuance of theBuild America Bonds (BABs). From fiscal 1997 to 2000, revenues averaged 4.1% annualgrowth and from fiscal 2001 to 2007, revenue growth averaged 12.5%, includingseveral tax rate increases. The respective ratings on the authority’s sales tax revenue bonds reflect thestrength and diversity of the authority’s service area within Utah’s economicepicenter (the Wasatch Front), the pledge of sales tax revenues that currentlyprovide good debt service coverage and the demonstrated record of successfullyand conservatively managing transit service operations and expansion. Bond proceeds will be used to expand the commuter rail project, construct newlight rail extensions, and finance system-wide improvements. In addition, Fitch affirms the authority’s existing ratings as follows: –Approximately $899 outstanding senior lien bonds at ‘AA’; –Approximately $436 million subordinated lien sales tax revenue bonds at ‘AA-’.The Rating Outlook on both the senior and subordinated lien bonds is Stable. 147, ; or DianeTuncer, ADA, +1-703-299-5510, .
About the American Diabetes Association (ADA)The American Diabetes Association is leading the fight against the deadlyconsequences of diabetes and fighting for those affected by diabetes.TheAssociation funds research to prevent, cure and manage diabetes; deliversservices to hundreds of communities; provides objective and credibleinformation; and gives voice to those denied their rights because of diabetes. As of March 31,2009, the Sun Life Financial group of companies had total assets undermanagement of $375 billion. Chartered in 1865, Sun LifeFinancial and its partners today have operations in key markets worldwide,including Canada, the United States, the United Kingdom, Ireland, Hong Kong,the Philippines, Japan, Indonesia, India, China and Bermuda. persons.This release does not constitute an offer to sell or a solicitation to buysuch securities in the United States.About Sun Life FinancialSun Life Financial is a leading international financial services organizationproviding a diverse range of protection and wealth accumulation products andservices to individuals and corporate customers. Rapid population growth is a defining characteristic of the region.Authority operations are conducted through six facilities throughout the areaand service a somewhat growing number of weekday riders (more than 125,000 in2007) by an integrated mass transit system, including regular route buses, lightrail, paratransit for the mobility impaired, and rideshare Financial operationshave been consistently balanced. Beginning in 1999, the authority began operating its TRAX system that consistsof 19 miles of light rail lines within the boundaries of Salt Lake County. Theauthority’s commuter rail project, to be fully integrated with the mass transitsystem, is an expansive undertaking to construct nearly 44 miles of asingle-track commuter line running north from Salt Lake City to Weber County(Commuter Rail North) and another 44 miles from Salt Lake City south to ProvoCity (Commuter Rail South).
With project costs of $612 million, Commuter RailNorth opened in April 2008. The full funding grant agreement obligates theFederal Transportation Authority to request appropriations of 80% of the coststo be paid annually through 2012. The authority received $80 million in 2007,$78.4 million in 2008, and is expected to receive an additional $80 million bythe end of this month. With an estimated cost of $842 million, Commuter Rail South is part of theFrontlines 2015 Project which has a total estimated cost of $2.6 billion.Commuter Rail South is currently under construction, about 20% complete, and isexpected to be operational by 2013. The Frontlines 2015 Project also includeslight rail expansion to the South Jordan (50% complete, to open in 2011), Draper(to be completed in 2014), and West Valley (32% complete, to open in 2013)communities, as well as to Salt Lake International Airport (to be completed in2014). The authority is expected to issue $290 million in senior fixed-ratebonds by 2017 and $315 million of subordinate variable-rate bonds by 2014 aspart of the project’s funding. Additional funding is expected to come fromfederal grants and operating revenues.
The series 2009B bonds are being issued under the Build America Bond program, apart of the American Recovery and Reinvestment Act (Recovery Act) signed intolaw on Feb 17, 2009. BABs are an attempt to provide public entities withcost-of-capital relief in order to induce capital expenditures. Pursuant to theRecovery Act, the authority will receive cash subsidy payments from the UnitedStates Treasury equal to 35% of the interest payable. Interest on the series2009B bonds is not excluded from gross income for federal income tax purposesand so will be fully subject to federal income taxation.