How are the SFO Bonds rated?
Bond ratings depend upon a number of factors developed by the rating agencies that rate the bonds, and take into consideration the security features designed to insure the payment of debt service on the particular bonds. Some bonds with the same underlying credit features might have different credit ratings assigned.
As of July 1, 2009 the Commission's underlying credit ratings are as follows:
| Moody's Investor Services | Standard & Poor's Ratings Service | Fitch |
|---|---|---|
| A1 | A | A+ |
| (reaffirmed on 9/28/2009) |
For a specific rating of a bond being issued by the Commission, see the Bond Offerings section of this website.
Moody's Investor Services
(212) 553-0300
Standard & Poor's Ratings Services
(212) 208-8000
Fitch
(800) 753-4824
LAST UPDATED ON MONDAY, 28 SEPTEMBER, 2009
What is a rating?
A rating is a measure of the credit quality and safety of a bond, based on the issuer's financial condition. More specifically, it is an evaluation indicating the likelihood that a debt issuer will be able to meet scheduled interest and principal repayments as assessed by a nationally recognized rating agency. For additional information relating to ratings, please visit http://www.msrb.org/msrb1/glossary/default.asp.
LAST UPDATED ON MONDAY, 28 SEPTEMBER, 2009
How are the SFO Bonds issued?
The SFO fixed-rate bonds are generally issued in $5,000 denominations as fully registered in book-entry bonds, without physical certificates or coupons. Bond transactions are recorded in electronic computerized book-entry form by the Depository Trust Company ("DTC"), a New York limited purpose trust company and member of the Federal Reserve System. DTC is a registered clearing agency under the Securities Exchange Act of 1934, and holds securities for participants. Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. Purchase of the book-entry bonds under the DTC system must be made by or through the Direct Participants who will receive a credit for the bonds on DTCs computerized records. The Direct or Indirect Participants are in turn responsible for keeping accurate records of their individual client's holdings and issuing written transaction confirmations and periodic account statements to the individual clients. Under this system individual bondholders do not receive physical certificates representing their ownership of the bonds, but should receive account statements of their holdings from their securities broker.
LAST UPDATED ON MONDAY, 28 SEPTEMBER, 2009
I own SFO Bonds and have questions, who should I contact?
For topics relating to the Commission's bonds, including interest or principal payment and notices, please contact:
The Bank of New York Mellon Global Corporate Trust Company, N.A.
700 S. Flower St, Suite 500
Los Angeles CA 90017
Johanna K. Tokunaga
213-630-6268
LAST UPDATED ON MONDAY, 28 SEPTEMBER, 2009
How can I buy the SFO Bonds?
Bonds issued by the Commission may be purchased in the primary or secondary market from brokers. Bonds are offered only pursuant to the official statement, a copy of which is available from your broker. When the Commission offers a new issue of bonds, there usually is a retail order period that is advertised to the public. Some investors also invest in municipal bonds. You should consult your investment advisor for further details. Commissions and fees vary by firms. The Commission is not permitted to provide investment advice. The Securities and Exchange Commission regulates securities firms, financial markets and investment advisors. Exchanges often also regulate their members.
LAST UPDATED ON MONDAY, 28 SEPTEMBER, 2009
What is a brokerage account?
This is an account with a broker/dealer that allows individuals to purchase stocks, bonds, mutual funds, and other investments. For additional information relating to brokerage accounts, please visit http://www.msrb.org/msrb1/glossary/default.asp.
LAST UPDATED ON MONDAY, 28 SEPTEMBER, 2009
What is an official statement (OS)?
An official statement ("OS") is the document prepared by the Commission for use by the underwriters in offering its bonds for sale to the public. The OS contains the relevant information about the Commission and the bonds being issued and includes important information that a potential investor should consider before purchasing the bonds. The official statement provides the terms of the bonds such as maturity and interest rates, an explanation of the security and pledge of revenues supporting the bonds, as well as the other investment considerations you should take into account before buying the bonds. For additional information relating to OS, please visit http://www.msrb.org/msrb1/glossary/default.asp.
LAST UPDATED ON MONDAY, 28 SEPTEMBER, 2009
What is the pricing date?
It is the day on which an underwriter establishes the final coupon rate, yield, and price for each maturity of an issue. During the retail order period (the day before the Pricing Date) and on the Pricing Date, an investor can place an order to purchase the bonds as part of the primary market offering
LAST UPDATED ON MONDAY, 28 SEPTEMBER, 2009