Munis close unchanged to weaker out long; Prince George's County, Md., prices $340.15 million

By Sheri Kasprzak

New York, Feb. 5 - Municipals were mostly flat on Tuesday after primary action picked up, market sources reported. Some weakness was seen out long, one trader said.

"We are seeing some block trades today," said one trader.

"Things are picking up on the primary side, and that's pushing us. We're outperforming Treasuries. Overall, we're unchanged, but out around 30 years, there's a softer tone."

The smaller new-issue calendar is helping yields somewhat, said Alan Schankel, managing director with Janney Montgomery Scott LLC.

"This week's light new issue slate should aid the market in digesting balances from recent new issues," he noted.

Fitch downgrades Miami-Dade County Water and Sewer

Looking to ratings news, Fitch Ratings cut the rating on Miami-Dade County Water and Sewer to A+ from AA-. The outlook is stable.

"Fitch cited narrowing margins, with debt service coverage at about 2x on senior debt, along with future debt increases to fund capital needs emanating from regulatory mandates," Schankel wrote Tuesday.

In other ratings news, Moody's Investors Service noted that the State of New York's monitoring system for local governments is a credit positive.

"The system, implemented by the state's comptroller, will evaluate local governments on both financial metrics and environmental factors such as demographic and economic indicators," said Schankel.

"Although the system lacks the enforcement teeth of stronger oversight regimes such as those of North Carolina and New Jersey, it is positive in that New York will assist communities with financial management issues and alert state and local officials to potential problems."

Prince George's County prices

Heading up the day's primary action, Prince George's County, Md., sold $340,145,000 of series 2013 consolidated public improvement bonds, said a pricing sheet.

The deal included $137.59 million of series 2013A consolidated public improvement bonds and $202,555,000 of series 2013B consolidated public improvement refunding bonds.

The 2013A bonds are due 2014 to 2033 with 2% to 5% coupons. The 2013B bonds are due 2014 to 2028 with coupons from 2.25% to 4%.

The bonds (Aaa/AAA/AAA) were sold competitively. The issuer did not return calls for the winning bidder by press time Tuesday.

Proceeds will be used to construct, reconstruct, establish, enlarge, demolish, acquire, rehabilitate and repair capital projects, including school facilities, roads and bridges, public buildings and fire and correctional facilities, as well as to refund the county's series 2005, 2006 and 2007A consolidated public improvement bonds.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.