2008-05-02 23:19:06 -
- As part of ongoing surveillance, Fitch affirms the rating for Livingston Parish, Louisiana general obligation (GO) bonds, series 2004 bonds at 'A'. This action affects approximately $8.3 million in outstanding bonds, which were used for the construction and acquisition of public libraries for the parish. The bonds are secured and payable from unlimited ad valorem taxes. The Rating Outlook
is Stable.
The 'A' rating reflects the parish's sound financial profile, moderate debt levels, and continued commercial and residential development. After Hurricane Katrina in 2005, the parish population reportedly surged by over 25%, which pressured the operations and finances of the parish. Management responded to this influx by increasing fees for certain services, and establishing a $2 million emergency fund. These actions helped the parish maintain what historically have been very healthy operating reserves, typically exceeding 100% of expenditures.
The parish in the past has been cited for various financial control weaknesses, and has taken steps in recent months to address these concerns. Specific action includes the hiring of a new finance director, the purchase of a new integrated accounting system, the hiring of additional personnel and improved the accounting policies and procedures. Fitch views these measures as a necessary response to past weaknesses and as important components in establishing and maintaining sound internal control practices.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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 Ratings, Austin
Andy Kaaz, 512-215-3730
Steve Murray, 512-215-3729
Cindy Stoller, 212-908-0526
(Media Relations, New York)
