Fitch Rates Hilton Head Island SC's GO Bonds 'AA+' & BANs 'F1+'; Outlook Stable
--$29.4 million GO refunding bonds, series 2016A, 2016B and 2016C 'AA+';
--$25 million GO BANs, series 2016, due Oct. 5, 2017 'F1+'.
The bonds and notes are expected to sell through competition. The GO bonds will price on Aug. 31. Proceeds from the sale will refund series 2005A GOs, series 2008A GOs, and series 2010 GO BABs. The GO BANs will price on Sept. 21 and proceeds will be used to fund beach nourishment and various general government projects.
Fitch has also affirmed the following outstanding ratings for the town:
--Long-Term Issuer Default Rating (IDR) at 'AA+';
--$51.7 million GO bonds at 'AA+';
--$19.4 million hospitality tax bonds, series 2011A and 2011B at 'AA'.
In addition, Fitch has upgraded the rating on the town's $4.9 million beach preservation fee bonds, series 2011 to 'AA' from 'AA-' based on application of Fitch's revised criteria for U. S. state and local governments, which was released on April 18, 2016.
The Rating Outlook is Stable.