Fitch Ratings Inc. placed some bonds held by the Reedy Creek Improvement District (RCID) on “negative watch” — meaning a downgrade is possible in the future — on Friday. The move comes one day after the Legislature passed a bill to dissolve the Walt Disney Company-controlled enclave in Central Florida.
The affected bonds are $79 million in outstanding utilities revenue and refunding bonds currently rated as “A” and $766 million in property tax-backed bonds rated at “AA-.” The district’s utility credit profile rating of “A” and its issuer default rating of “AA-” were also placed on negative watch status.
The bill (SB 4C) which Gov. Ron DeSantis has yet to sign, first emerged only Tuesday. But in a sign of DeSantis’ clout in the Legislature among his fellow Republicans who lead both chambers, the issue was added to the already-scheduled Special Session to deal with redistricting and passed a little over 48 hours after it was filed.
The bill would dissolve the RCID and five other special districts established before the last major rewrite of Florida’s Constitution in 1968. The measure is aimed squarely at Disney, which drew the ire of DeSantis after the company’s CEO, Bob Chapek, came out against a bill that bans teaching of sexual orientation or gender identity in kindergarten through third grade and in an “age inappropriate” manner in all other grades.
The legislation dissolving the RCID won’t take effect until June 1, 2023. But the uncertainty of how the district’s $1 billion in debt will fall on surrounding municipalities — namely Orange and Osceola counties — that will absorb the district led Fitch to put it on notice for a possible downgrade.
“The Negative Watch reflects the lack of clarity regarding the allocation of the RCID’s assets and liabilities, including the administration of revenues pledged to approximately $1 billion in outstanding debt, following the dissolution of RCID or its re-ratification on or after June 1, 2023,” the Fitch announcement reads.
“Fitch expects the title of all property owned by RCID, including its indebtedness, to be transferred to Orange County (and to a lesser extent, Osceola County) or to a successor agency, as prescribed under Florida law. Fitch believes the mechanics of implementation will be complicated, increasing the probability of negative rating action.”
One factor of the new negative watch status was the revision of RCID’s score on “rule of law, institutional and regulatory quality, control of corruption” from a “5” to a “3” rating.
The passage of the bill “points to a substantially reduced degree of independence from political pressure,” the notice states. “These actions potentially diminish government effectiveness and could prove harmful to bondholders, which has a negative impact on the credit profile and is highly relevant to the Negative Watch action.”
April 22, 2022 at 2:12 pm
Good going Bob Chapek you moron. Should have kept out of the politics.
All of them
April 22, 2022 at 4:14 pm
Enjoy your new taxes!
April 22, 2022 at 2:21 pm
Fitch is exactly right. DeSantis is behaving like a 3rd world dictator. He’s going to keep messing around and get all the state bonds degraded.
Nobody is safe from populist fascism.
April 22, 2022 at 3:15 pm
Do you feel the same way when Gavin Newsom treats companies in California in a similar fashion?
April 23, 2022 at 3:44 am
Becuase unlike Florida california won’t be in the ocean by the end of two decades. And we can use all revenue to buy new roads lol
April 22, 2022 at 2:22 pm
You mean exercising their Constitutional rights?
April 22, 2022 at 2:39 pm
Do you have small kids? I mean do you support gender identity and sexual orientation academics for K through Third? What business does Disney have in poking their nose in this? Let kids be kids. All of you liberal hacks can start your indoctrination at a later part of their life.
April 22, 2022 at 4:16 pm
“Let kids be kids”
Better start teaching them how taxes work if you dont ban any more math books!
April 22, 2022 at 2:26 pm
Downgrades are expected. Fitch is just the beginning. Real conservatives understand that the regressive policies of Government should not be imposed on the private sector.
Florida taxpayers will ultimately pay the price. Maybe the “sleeping” legislature and their incompetent leader DeSantis is now “woke” for at least fifteen minutes of shame.
April 22, 2022 at 2:45 pm
Incompetent DeSantis. That is rich coming from a guy that voted for the most incompetent President of the United States. DeSantis is a leader. The parents of young Florida children do not want teachers teaching gender identity and sexual orientation to kids in grades K through 3. Chapek is the idiot here. Watch, he will be gone shortly for getting Disney involved in this. I know you wish Andrew Gillum were Governor. Just think of how screwed up this state would have been under his leadership. Guy would have been snorting coke and pounding male whores.
April 22, 2022 at 3:00 pm
Blah blah blah. DeSantis is the worse Governor in the USA. The Texas Governor easily comes in second place …..but there is competition for first place between these two Trump apologists.
Today’s Republican Party must be destroyed before it can be rebuilt. The only real conservative left in the GQP is Liz Cheney.
You’re no longer worth my time. You have no idea what fiscal conservatism look like. Bye!
April 22, 2022 at 6:33 pm
Ha! Ha! So now my Democrat friend is a fiscal conservative. This is rich. Here we have a CIC that tells us in order to slow down inflation we must put more money into the system. Biden and you obviously flunked Econ 101. I wrote my liberal congresswoman the day I paid my taxes asking her why my money is going to illegal immigrants to feed, clothe, transport, provide medical care, educate and house. What kind of fiscal responsibility is that my friend?
April 23, 2022 at 7:37 am
Lincoln ass wipe. Go towel off your Lincoln team.
Florida $20 billion in non fed monies in reserve, thanks to America’s Gov.
The state will not allow any local unit down.
Wah Wah peter h, total fake tool.
DeSantis the whiz kid Gov, whiz’s on you Dums. Enjoy
April 22, 2022 at 4:23 pm
I think all he is trying to say is reality in the business world vs reality in DeSantis world are not compatible. There is a price to pay and well DeSantis is writing checks his cult of personality can’t cash.
April 23, 2022 at 8:39 am
Hardly, Lincoln towel boy!
America’s Gov has protected Florida.
$20 billion in Florida reserves, no prob. Thanks to best Gov. in America.
Disney has financial obligations which will be met. Total liberal idiocy. So stupid.
Don’t Look Up
April 22, 2022 at 4:11 pm
Chapek has the right to defend the tens of thousands of gay, lesbian and transgender folks who work in and for Disney and the hundreds of supporting businesses that are in existence BECAUSE OF DISNEY ORLANDO. We still live in a Constitutionally protected …… even in what DeSantis thinks is the FREEDUMB STATE OF FLORIDA
April 22, 2022 at 6:41 pm
What exactly is Chapek defending here? Florida and it’s citizens do not, I repeat do not want K through third grade students taught gender identity and gender identity. So what is the problem here? You can begin your programming in fourth grade and up.
And you know it
April 22, 2022 at 7:11 pm
You can’t against marvel and Star Wars Florida lol
April 23, 2022 at 8:35 am
Chapek has a right to lose his job, cause of his Corp idiocy. Well done, case study on incompetence.
Lunatic insane extremists run the asylum. How you like them now?
You are a ignorant suck hole “don’t look.” Meaningless, clueless statements and when you finally do, it’s more ignorance. LMAO.
April 22, 2022 at 8:39 pm
Hmmm as a former teacher k-12 and Community College Professor I find the political scene of tit for tat not only bad business for Florida but fundamentally an issue where there is no discourse for those affected. Who did DeSantis consult to ask the homeowners and business owners of the Reedy Creek and the other special districts? Government should be governed with thought not a temper tantrum…This is a sad day for Florida and a sad day for education as a whole.
April 22, 2022 at 8:58 pm
Sounds like you would be happy to teach K through 3 sexual orientation and gender identity classes. Good that you are out of the education / programming business.
April 23, 2022 at 5:46 pm
Your just an ignorant troll who wants to be recognized. As a Florida Teacher who is not retired we did not teach K -3 sexual orientation and gender identity. That is part of the problem here alot of this stuff is just fluff and misdirection by DeSantis. We as teachers have certain guidance on the curriculum. If I could only tell you how many times misguided parents brought me into the office to discuss the what they felt was inappropriate I could fill an old fashion encyclopedia. Everyone thinks public education is theirs to decide what is appropriate. Its not parents have the ability to home school, place children in private schools if they do not like what or how we teach. If you haven’t trod in my shoes get off them…The teachers in Florida are underpaid and put up with ALOT they don’t need politics at them as well that is WHY we have SCHOOL BOARDS!!
April 23, 2022 at 7:35 pm
OBTW its FAKE NEWS…DeSantis created a FAKE and WOKE Story!! Seriously…Who does that ? Not a SANE and CARING GOV who now has played Tit for TAT with THOUSANDS of Florida homeowners and jeopardize THOUSANDS of JOBS and forced Osceola County and Orange to take the BURDEN of his SPAT with Disney!!
April 24, 2022 at 5:35 am
Fake news and lies.
Total BS. Go crawl in your liberal bubble.
You ignorant Dem, Dum, Manchurian, how stupid are you.
Florida is near $20 billion in financial budget reserves. They will not abandon the reedy creek outline. Disney has legal responsibilities. Be quite with your hate and lies. Loser shut up.
April 22, 2022 at 11:25 pm
All you idiot Manchurian Dem, Dum lickers don’t even have a clue that Florida, the best state in country due to this Gov, has bout $20 billion in reserves. Non fed money you blowhards.
Florida, America’s Desantis and legislature will protect the counties and local units. Don’t listen to clueless other half of dum dum Demings.
Furthermore, Disney will not be able to escape its financial commitments. You idiots suggesting Disney will leave is a laugher. As for the haters like peter h, raheem, fred, fake moniker don’t look, as they have no clue or understanding bout govt, let alone life.
DeSantis is the whiz kid Gov that whiz’s everyday on the Dums. Enjoy!
Into the sea
April 23, 2022 at 3:47 am
“20 billion in reserves”
Until the next major hurricane wipes out another few hundred Republican dirt farmers lol
April 23, 2022 at 7:29 am
$20 Billion in state reserves, due to America’s Gov, not a thousand for Gillium’s drugs or Nikki frauds tape.
Another non issue, lie from Dum ,Dem lickers.
April 23, 2022 at 12:10 pm
Gotta love that Democrat arrogance. Watch what happens in November.
April 23, 2022 at 4:56 pm
“Watch what happens in November”
China: we will still be better then you that’s what
April 24, 2022 at 9:43 am
Okay Tom the loser dum dum, You can’t stand folks saying truthful things you tell them to shut up…if they don’t agree what a bully pulpit…Truth is in the eye of the beholder and my truth says you have no idea what it means to actually manage government nor the impacts of decisions made. 20 billion dollar reserves…seriously you going with that one..Lets get the real numbers:
Florida Reserves 2021-2022
• $4.9 billion in unallocated General Revenue
• $2.7 billion in the Budget Stabilization Fund
• $1.9 billion in unallocated Trust Funds
• $9.5 billion in Total Reserves
Don’t believe me try this one:https://www.flgov.com/wp-content/uploads/2021/06/FY-21-22-Budget-Highlights-6.2.21-FINAL.pdf
April 24, 2022 at 12:13 pm
It’s a big mistake to respond to anything Tom posts. He’s an arrogant ignorant uneducated Trumpster hack simply looking for the attention he doesn’t get from friends or family. Tom is all about personal attacks and lying. Tom will never allow truthful facts get in the way of his continuous fake news story line! Tom makes stuff up as he types. Just like his hero figures Trump and childish Madison Cawthorn, Tom vacillates in a cesspool of absurd self-grandiose magical thinking. Do yourself and ALL OF US a big favor. Ignore all of his return comments. Maybe the internet troll will go away.
April 24, 2022 at 3:16 pm
FP Monitor, I understand your stance. My point for responding to Troll Tom was simple..He is putting out bad stats..And folks take that as face value. I want to get real factual information on the thread. So if I fact check the Trolls maybe just maybe we might educate someone to not take the gospel “according to Trolls” at face value and then they might just become a truly informed individual who can think for themselves and vote according to their own principles and knowledge. That is what teachers do…
April 24, 2022 at 5:24 pm
Soros FP monitor, u loser.
Stop did-lying the AOC squad staff.
Pay attention loser. Such a degenerate. Get help, call Hillary.
April 24, 2022 at 4:44 pm
Totally accurate on estimated amount. Florida’s revenues continue to exceed expectations. The lowest of lowest unemployment and other revenues continue to push reserves to exceedingly highest levels.
Btw, your moniker is meaningless but the congressional majority in Congress will do to the incompetents Potus snd Vpotus.
Well over 10 billion, moving in the expected $15 billion or greater.
Moron fake moniker, you have no clue. The reserves are over $15 billion, with two months to go forward to fiscal year. You are dealing with arrear numbers.
Nice try loser, my numbers are accurate compared to you. Feel free to suggest loser that Florida economy isn’t a Elon Musk rocket ship. Only dumb ass Manchurian would suggest other.
Manchurian Failure! LMAO
You and FP monitor make me legend!
April 24, 2022 at 5:20 pm
Hardly. Loser fake meaningless moniker. You don’t have votes to buy new underwear.
That’s the proposed budget from Jan.
We are in April with two months to go.
Reserves are exceeding expectation as Gov commented on budget 10 days ago , exceeding $15 billion.
Florida’s economy the beacon of growth. Reserved much closer to mine compare to your desperate January play.
Nice try ignoramus, no clue as usual.
LMAO. Dem Dum Manchurians. Ass wiped
April 24, 2022 at 2:55 am
Elon Musk is sure glad he chose America’s Governor, Greg Abbott, over dipstick Dion DeSantis. Serves Disney right. They’ve been giving loads of money to Florida republicans. You can’t keep meth smoking vipers in your backyard and expect them to only bite others.
April 24, 2022 at 2:59 am
We need Trump back in office, not this diluted watered down wanna be dipstick Dion DeSantis. Trump is pro big business, pro small business. Dion is a dipstick. We’d be much better off with Trump or America’s Governor, Greg Abbott.
April 24, 2022 at 5:29 am
Only one America’s Gov, full stop. DeSantis owns it. His record is second to none. Biden WH fears him, stupidly attack him building his brand.
DeSantis leads the conservative movement, intellectual leader. Fenna you have no clue.
No one has accomplished anything like America’s Gov, his record is an A.
You get an F.
Sister of Perpetual Indulgence RSM
April 24, 2022 at 5:30 pm
Please don’t show facts (with links) to lying loser Tom! He’s a legend in his own tiny pea brain.
April 24, 2022 at 7:23 pm
No facts, a budget outline from January is months out of sync.
Go scratch the choir boys sister.
Reserves estimated at $15 billion with two months left. As if any of you Manchurians would even be aware. I speak truth!
Fake moniker can’t even use real time data, are you kidding ne 5 months old.
Florida’s economy is as hot as Elon’s Musks rocket ship. Ignoramuses galore. LMAO, LOSERS
April 24, 2022 at 7:32 pm
No facts losers! You mean a 5 month old budget outline. LMAO, you crums wouldn’t know without me. In your liberal bubbles. Like I said estimated at $15 billion, topping out at $20 billion. Enjoy!
April 25, 2022 at 3:08 am
Total con, January budget numbers outline. Purposeful misleading ax we are 4 months later, with 2 months left.
Reserves inching increasing towards $15 billion cause of economic growth.
Nice try losers, lying.
April 25, 2022 at 7:39 am
LMAO, Sista and fake moniker along with Manchurian nation.
As if you clown haters even knew we had billions upon billions in reserves. Using the outdated budget submitted in January at the lowest end. If it was a blue state governed by a tyrannical lockdown Gov, we’d be in financial debt.
Approaching estimated $15 billion with two months left, reaching estimated $20 billion. Thanks to America’s Gov, hottest state economy in Country. Jobs, unemployment 3.2% , top 5 in country, wage growth 8.7%, top three in country, $15 billion in reserves approaching $20 billion. Florida the economic example.
April 25, 2022 at 4:30 pm
How come Gov DeathSantis is not shutting down all Apple Stores in FL? He does not know who is the CEO there?
Comments are closed.