Rating agency reaffirms AAA bonds for Hamilton
The Fitch Rating Service has reaffirmed its top bond rating for Hamilton County, leaving Hamilton as the only county among Tennessee's 95 counties with a top rating from all three major bond rating agencies.
In its newest assessment of the county's $259.5 million of outstanding general obligation bonds, Fitch reaffirmed its AAA rating and gave the county a stable outlook. Fitch said the rating "reflects the county's financially resilient revenue and operating frameworks, flexible labor environment and low long-term liability burden."
Mayor Jim Coppinger said Monday the favorable rating "is an endorsement of the fiscal conservatism we have practiced since 2011" and "is a validation of our everyday practice of watching the taxpayer's dollars." Coppinger also highlighted Fitch's favorable assessment of the county's reserves.
"The county could tap this fund balance as well as lean on its strong revenue-raising capacity and expenditure-cutting flexibility to offset temporary revenue pressures," Fitch analyst Nicole Wood wrote in a five page review of the county's financial standing. "Fitch expects employment growth to continue with the expansion of existing and new companies in the county. Wealth indicators are above the state levels and slightly below the U.S. levels."
Moody's and Standard & Poor's Rating Services also have top ratings for Hamilton County's debt.
Anti-union VW worker seeks to overturn ruling
A Chattanooga Volkswagen plant worker, with help from the National Right to Work Foundation, is seeking to overturn a decision that permitted a small group of factory employees to unionize.
Patrick Penderfraft said he was one of the skilled trades workers who voted against union representation in a December 2015 election won by United Auto Workers supporters by a margin of 108 to 44.
The foundation assisted him in filing a brief in the Washington, D.C., Circuit of the U.S. Court of Appeals arguing his vote on union representation was diluted because the so-called micro-unit was substantially made up of pro-union employees rather than the whole workplace, which had already rejected unionization.
In February 2014, all the production workers at the plant voted 712-626 to reject UAW representation in a National Labor Relations Board-sanctioned election. The NLRB later approved the second election of skilled trades workers, or VW employees who work on and repair the robots and other equipment at the factory.
VW then appealed to the appeals court an NLRB order that it negotiate with the UAW. The VW lawsuit is still pending in court and, at least for now, the Chattanooga plant has no union contract.
TVA to price bond for $1 billion today
The Tennessee Valley Authority expects today to price a $1 billion, 10-year bond issue the utility said will be used "to refinance existing debt or for other power system purposes."
The Fitch rating agency on Monday gave the new bonds a AAA ratings with a stable outlook, based on the implicit backing of the bonds by the federal government.
TVA Chief Financial Officer John Thomas said last week that TVA's long-term borrowing topped $26 billion last year, approaching the $30 billion debt ceiling set by Congress for the federal utility. But with the completion of its last planned major nuclear power plant in 2016 at Watts Bar near Spring City, Tenn., TVA expects to soon begin to pay down on its overall debt. Fitch also said TVA could turn to third party financing or sale-and-leaseback arrangements to limit its statutory debt.
"Given the authority's sizable capital needs, long-term borrowing capacity remains a credit concern as TVA continues to approach a $30 billion debt ceiling," Fitch said. "However, this concern continues to be partially mitigated by TVA's access to, and past use of, alternate financing that does not count against the limit."
Gap raises outlook on improving sales
Gap Inc. is raising its earnings outlook after delivering a solid sales performance during the critical holiday shopping period. The fashion retailer said Monday that fourth-quarter revenue at stores opened at least a year rose 2 percent.
By division, Gap's namesake stores saw the key measure unchanged, while Old Navy enjoyed a 5 percent gain. Banana Republic posted a 3 percent decline. The clothing chain has been trying to recover from a long-running malaise.
Gap said it now expects earnings for the fourth-quarter to be 50 cents to 51 cents per share on an adjusted base. Analysts surveyed by FactSet were expecting 44 cents per share.
Icahn says he'll sell ex-Taj Mahal casino
ATLANTIC CITY, N.J.- Billionaire investor Carl Icahn said he will try to sell the former Trump Taj Mahal casino in Atlantic City, blaming a failed bill by the leader of New Jersey's state senate as the last straw. Icahn told The Associated Press on Monday he has decided to seek a buyer for the casino he shuttered on Oct. 10.
France targets bankers after Brexit vote in UK
A team of French officials is in London trying to make Paris the European Union's financial hub once Britain leaves the EU. Officials including the deputy mayor of Paris met Monday with representatives of firms based in London's financial district. Many banks and other city firms are considering moving jobs from Britain once the U.K. leaves the 28-nation bloc and its single market.