Scottsdale Municipal Property Corp. bonds in Arizona are seeing selected maturities removed from Fitch Ratings coverage following prerefunding activity. The action affects prerefunded maturities from the series 2017 excise tax revenue refunding bonds, which previously carried an ‘AA+’ rating with a Positive Outlook.
Highlights
- Fitch Ratings has withdrawn ratings for Scottsdale Municipal Property Corporation, AZ refunding bonds series 2017 maturities 810489SC9, 810489SD7, 810489SE5, 810489SG0, and 810489SH8 following prerefunding.
- Prerefunding means the affected bonds are now backed by escrowed funds for early repayment, prompting rating withdrawal and not signaling credit deterioration.
- The action impacts only the listed maturities, affecting their tracking in rating and disclosure systems, and does not impact Scottsdale Municipal Property Corporation’s other outstanding debt.
Withdrawal covers selected 2017 bond maturities
As reported by Fitch Ratings, the withdrawn ratings apply to Scottsdale Municipal Property Corporation, AZ excise tax revenue refunding bonds series 2017, but only to prerefunded maturities identified as 810489SC9, 810489SD7, 810489SE5, 810489SG0 and 810489SH8.
Fitch says its website now reflects the updated rating history for those maturities. The agency states the ratings are withdrawn because the bonds were prerefunded.
Implications for Arizona municipal debt tracking
The move updates the rating status of the affected Scottsdale municipal bond maturities rather than signaling a new credit deterioration. In municipal finance, prerefunding typically means bonds are backed by funds set aside for repayment before their original maturity dates, which can lead agencies to discontinue ratings on the affected securities.
The action is limited to the specified maturities and does not describe changes to other Scottsdale Municipal Property Corporation debt in the notice. For investors and market participants, the main effect is on how these bonds are tracked in ratings records and disclosure systems.
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