Oak Island’s bond rating drops

OAK ISLAND, NC (ALACRA.COM) – Standard & Poor’s Ratings Services lowered its underlying rating (SPUR) on Oak Island, N.C’s enterprise system revenue bonds to ‘A-‘ from ‘A,’ reflecting construction delays associated with the town’s new wastewater collection system that have inhibited the implementation of wastewater services and the timely receipt of assessments, which have, in turn, weakened financial margins.

Standard & Poor’s also assigned its ‘A-‘ long-term rating and stable outlook to the town’s series 2011 enterprise system revenue bonds.

The new rating reflects our view of the wastewater system’s: Start-up nature with a continued dependence on the timely receipt and realization of wastewater assessments; Above-average combined rates; and Local service area economy with a tourism component characterized by adequate yet lower-than-average income levels…

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