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Crystal Cruises Delves Deeper Into Christianity With New European Adventures Feb 10, 2012 03:54PM

Fitch Affirms Edinburg, TX Utility System Revs at 'AA-'; Outlook Stable Feb 10, 2012 03:52PM

AUSTIN, Texas--(BUSINESS WIRE)-- Fitch Ratings affirms the rating on the following revenue bonds of Edinburg, Texas (the city) as part of its continuous surveillance effort:

--$18 million utility system revenue bonds, series 2000, 2002 and 2006 at 'AA-';

--$1.7 million utility system revenue refunding bonds, series 2010 at 'AA-'.

The Rating Outlook is Stable.

SECURITY

The bonds are secured by a pledge of a first lien on net revenues of the city's water and sewer system (the system). Bonds are also secured by a debt service reserve fund provided by a surety policy, equal to average annual debt service.

KEY RATING DRIVERS

OPERATIONAL CONSTRAINTS: The rapidly growing customer population has placed operational pressure on the system. Growth has recently slowed to a more moderate pace, which if sustained could ease capacity needs somewhat.

SOLID FINANCIAL PERFORMANCE: Debt service coverage (DSC) levels declined to a still solid 1.8 times (x) in fiscal 2010 due to unusually high rainfall totals which in turn resulted in lower consumption. However, coverage appears to have recovered in fiscal 2011. Liquidity levels remain strong with over 360 days of cash on hand.

LOW DEBT BURDEN: The system's debt burden is low on per customer and per capita basis with rapid amortization. Despite additional debt planned in the next five years debt levels should remain moderate.

MODERATE RATE FLEXIBILITY: The system exhibits moderate rate flexibility, as combined utility rates fall below Fitch's affordability threshold.

MIXED ECONOMIC PROFILE: The area is characterized by favorable unemployment rates but below average wealth levels.

CREDIT PROFILE

Edinburg provides retail service to more than 77,000 people within the city. The system is facing operational pressure due to rapid growth. In 2009 the city was warned by state regulators that wastewater flows (over 7 mgd) exceed permitted capacity (5.9 mgd). This resulted in the city entering into an agreed order with state regulators and required the relocation of the system's wastewater discharge site. A needed expansion of the system's sole wastewater treatment plant is under construction and expected to be online by mid 2013. The expansion will increase wastewater treatment capacity by over 50% to 12.3 mgd.

The city purchases raw water on a wholesale basis from two Hidalgo County irrigation districts, which are supplied by reservoirs on the Rio Grande, for the bulk of the city's water needs. Due to the Texas drought of 2011, the city faced water supply pressures. In fiscal 2011 demand for water was higher than the city's permanent supply. The city met the extra demand by leasing additional water rights from surrounding entities. Prospectively, the city will budget annually to lease water rights based on projected need and will continue to plan for the purchase of additional long term water rights.

Financial performance has been sound, with senior lien annual debt service (ADS) coverage levels averaging 2.2x for the past three years. All-In ADS coverage has also been solid, averaging 2.0x over the same period. Financial results for fiscal 2010 were negatively impacted by an unusually wet season in which the city received over 30 inches of rain, thereby cutting consumption of water dramatically. As a result, DSC declined to 1.8x in 2010 from 2.7x in 2009. Unaudited fiscal 2011 results show a notable improvement in DSC to 2.5x. Other financial metrics also have been favorable, including liquidity levels, which registered at 368 days of cash on hand for fiscal 2010.

Capital needs are moderate at $47.7 million through fiscal 2016, of which 30% is expected to be provided from debt. Currently, leverage ratios are low, with outstanding debt per customer at just $687 in fiscal 2010, comparing favorably to the 'AA' rating category median of $1,615 per customer. Debt amortization is rapid at 53% and 97% retiring in 10 and 20 years, respectively. The current capital plan includes $15 million for the expansion of the wastewater treatment plant, which was funded by bonds issued in 2010. Also included in the plan is approximately $11 million in additional debt for expansion of the water treatment capacity scheduled for 2013. With the planned issuance, debt levels should remain moderate for the rating category.

The city's customer base has averaged 3% annual growth in the last five years, compared to the more rapid growth of over 6% experienced annually from 2005 through 2008. This growth increased the rate payer base and enabled the city to minimize rate increases, although it put a strain on capital resources. The city's monthly residential water and sewer charge of $47 for 10,000 gallons of water is below the state average and is second lowest in the area. The city has a history of frequent moderate rate increases, with the most recent rate adjustment of less than 5% occurring in fiscal 2011. Despite some concentration amongst the largest users, the customer base is well diversified, and the top 10 largest customers (16% of fiscal 2010 sales) are mostly government institutions.

Located 20 miles from the U.S.-Mexico border, Edinburg (general obligation bonds rated 'AA-' by Fitch Ratings) is the seat of Hidalgo County in southern Texas. Edinburg's population grew over 50% during the latest census period. The energy production, healthcare, higher education, and tourism components of the local economy have developed in recent years to complement the distribution, international trade, and agricultural sectors that have historically been present. As a result, the city's unemployment rate is favorable at 7.9% for November 2011, well below the county and MSA level of 11%. However, resident wealth levels remain substantially lower than those of the state and nation, although the below-average cost of living somewhat offsets these conditions.

Additional information is available at 'www.fitchratings.com' The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

In addition to the sources of information identified in the U.S. Municipal Revenue-Supported Rating Criteria, this action was additionally informed by information from Creditscope and Municipal Advisory Council of Texas.

Applicable Criteria and Related Research:

--'Revenue-Supported Rating Criteria' (Jun. 20, 2011);

--'Water and Sewer Revenue Bond Rating Guidelines' (Aug. 10, 2011);

--'2012 Water and Wastewater Medians' (Dec. 8, 2011);

--'2012 Outlook: Water and Wastewater Sector' (Dec. 8, 2011).

Applicable Criteria and Related Research:

Revenue-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=637130

U.S. Water and Sewer Revenue Bond Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647331

2012 Water and Sewer Medians

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=657111

2012 Outlook: Water and Sewer Sector

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=657110

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Fitch RatingsPrimary AnalystTeri Wenck, CPA, +1-512-215-3742Associate DirectorFitch, Inc.111 Congress Avenue, Suite 2010Austin, TX 78701orSecondary AnalystRebecca Moses, +1-512-215-3739DirectororCommittee ChairpersonAmy Laskey, +1-212-908-0568Managing DirectororMedia RelationsSandro Scenga, +1-212-908-0278 (New York)sandro.scenga@fitchratings.com

Source: Fitch Ratings

NorRock Realty Finance Corporation Update for Holders of Class A Shares Feb 10, 2012 03:49PM

TORONTO, ONTARIO -- (MARKET WIRE) -- 02/10/12 -- NorRock Realty Finance Corporation (TSX: RF.A) ("NorRock" or the "Corporation") advises that holders of NorRock Class A shares will receive units of Partners Real Estate Investment Trust ("Partners REIT") (TSX VENTURE: PAR.UN) on a post-consolidated basis.

NorRock announced on February 1, 2012 the closing of the previously announced acquisition of substantially all of the assets of NorRock by Partners REIT through a plan of arrangement (the "Arrangement"). Pursuant to the Arrangement, holders of NorRock Class A shares of record as at the close of business on February 8, 2012 were entitled to receive consideration in the form of units of Partners REIT.

NorRock has been advised by Partners REIT that the timing of the previously announced consolidation of the units of Partners REIT on the basis of one (1) post-consolidation unit for every four (4) pre-consolidation units is such that post-consolidation units of Partners REIT will begin trading on the TSX Venture Exchange on February 14, 2012. As a result of the timing of such consolidation, holders of NorRock Class A shares will receive units of Partners REIT on a post-consolidated basis.

As previously announced, on or about February 14, 2012, Computershare Investor Services Inc., the depositary for the Arrangement, will mail certificates to the registered holders of NorRock Class A shares.

NorRock Realty Finance Corporation

The Corporation is a mutual fund corporation incorporated under the laws of the Province of Ontario. The Corporation was created to obtain exposure to the investment performance of an actively managed portfolio of secured loans and investments in the Canadian commercial real estate sector on a tax-efficient basis.

Certain statements included in this news release constitute forward-looking statements including statements identified by the words "plan", "will" and "intend", and similar expressions or the negative thereof. The forward-looking statements are not historical facts but reflect the Corporation's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Readers are cautioned not to place undue reliance on forward-looking information. The Corporation undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information except as required by law.

Contacts:
NorRock Realty Finance Corporation
Jacqueline Boddaert
Chief Executive Officer
(416) 479-9510 x305
1-866-362-2469 (FAX)
info@norrock.ca
www.norrock.ca

Source: NorRock Realty Finance Corporation

NorRock Realty Finance Corporation Update for Holders of Class A Shares Feb 10, 2012 03:49PM

TORONTO, ONTARIO--(Marketwire - Feb. 10, 2012) - NorRock Realty Finance Corporation (TSX:RF.A) ("NorRock" or the "Corporation") advises that holders of NorRock Class A shares will receive units of Partners Real Estate Investment Trust ("Partners REIT") (TSX VENTURE:PAR.UN) on a post-consolidated basis.

NorRock announced on February 1, 2012 the closing of the previously announced acquisition of substantially all of the assets of NorRock by Partners REIT through a plan of arrangement (the "Arrangement"). Pursuant to the Arrangement, holders of NorRock Class A shares of record as at the close of business on February 8, 2012 were entitled to receive consideration in the form of units of Partners REIT.

NorRock has been advised by Partners REIT that the timing of the previously announced consolidation of the units of Partners REIT on the basis of one (1) post-consolidation unit for every four (4) pre-consolidation units is such that post-consolidation units of Partners REIT will begin trading on the TSX Venture Exchange on February 14, 2012. As a result of the timing of such consolidation, holders of NorRock Class A shares will receive units of Partners REIT on a post-consolidated basis.

As previously announced, on or about February 14, 2012, Computershare Investor Services Inc., the depositary for the Arrangement, will mail certificates to the registered holders of NorRock Class A shares.

NorRock Realty Finance Corporation

The Corporation is a mutual fund corporation incorporated under the laws of the Province of Ontario. The Corporation was created to obtain exposure to the investment performance of an actively managed portfolio of secured loans and investments in the Canadian commercial real estate sector on a tax-efficient basis.

Certain statements included in this news release constitute forward-looking statements including statements identified by the words "plan", "will" and "intend", and similar expressions or the negative thereof. The forward-looking statements are not historical facts but reflect the Corporation's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Readers are cautioned not to place undue reliance on forward-looking information. The Corporation undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information except as required by law.

FOR FURTHER INFORMATION PLEASE CONTACT:
        NorRock Realty Finance Corporation
        Jacqueline Boddaert
        Chief Executive Officer
        (416) 479-9510 x305
        Fax: 1-866-362-2469(FAX)
        info@norrock.ca
        www.norrock.ca

Source: NorRock Realty Finance Corporation

Attune RTD Interviews With CEO CFO Publication Feb 10, 2012 03:47PM