Wednesday, November 10, 2010

Parking and debt... not the debt you are thinking of either

There is bit of debate inside the fence over whether the pension/parking imbroglio would hit the city's credit rating.  Seems that the city is issuing some new bonds in the midst of the tempest and overall there is not a hit on the ratings of new or old debt for the time being.  See:  Fitch Rates Pittsburgh, PA's GOs 'A'; Outlook Stable.

So Fitch is generally unconcerned with the situation here, although these are folks who have had curious Pittsburgh-logic in the past.

I learn something new everyday.. I had never heard this term before,but the parking lease we have been considering is apparently called a brownfield parking concession

Speaking of bonds....  it is actually big news that bond insurer Ambac has filed for bankruptcy.  Anyone want to poke at what public debt locally is insured by Ambac..  also a bit interesting if you poke at who Ambac itself owes money to.

and while were looking that up, what do we see?  Looks like the city school district has a big bond issuance going out the door. Looks like a refi from 2002 debt.  Which brings to mind a real basic point that interest rates are low and it really is an historically good time to be issuing bonds if you have the capacity and the credit ratings to justify it. 

and finally...  on the topic of who might not have the capacity to refi debt.  Bloomberg has a great tutorial and update on how screwed up municipal finance world was for a time. Wall Street Collects $4 Billion From Taxpayers as Swaps Backfire.  Swaps being among those things that almost did the PWSA in last year. I wonder what is up with the whole deal that brought that situation under control because there is a recent debt downgrade hanging out there that might have consequences for all that.. but who is noticing?

1 Comments:

Anonymous MH said...

I had never heard this term before,but the parking lease we have been considering is apparently called a brownfield parking concession.

That seems a bit harsh, but I suppose most of downtown Pittsburgh is an abandoned industrial site if you go back far enough.

Thursday, November 11, 2010 9:19:00 AM  

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