Hamilton County's pitch was simple Thursday: The county has a strong, diverse economy with low unemployment and ever-growing sales tax receipts.
Bonds for a new Cincinnati Bengals football stadium are a sound investment, and the county will have plenty of money to pay them off, officials boasted.
"We know we have an incredibly strong argument," Hamilton County Commission President Bob Bedinghaus said before the county's meetings. "As important as this is, we're confident we've got a strong story to tell."
County officials told that story twice Thursday: Once to Moody's Investors Service and once to Standard and Poor's Corp.
Those agencies will rate the county's bonds. That rating, in turn, will help determine what interest rate the county gets on the bonds and, thus, how much the debt will cost the county. It also will signal to investors whether the county bonds are a good investment.
Making the presentation for the county were Mr. Bedinghaus, Hamilton County Auditor Dusty Rhodes, county administrative services Director Suzanne Burck and Mitchell Ziets, the county's financial adviser from Philadelphia.
They outlined the scope of the stadium complex, talked about its cost and how voters approved a half-cent sales tax increase to pay for building new stadiums for both the Bengals and Reds.
Barring unforeseen changes in the bond market, the county plans to issue $322 million in 30-year bonds that are "callable" after 10 years. That gives the county the option of paying off the debt early.
Historically, the county's sales tax receipts have grown by 5.22 percent a year. If that growth holds to 5 percent annually, the county could have the debt paid off by 2018, according to its projections.
The most important factor for the ratings agencies is whether the county will have enough money to cover the debt, said Richard Ciccarone, director of research for VanKampen American Capital, a mutual fund in Chicago.
The fact that the county has a lease that keeps the team in town for at least 25 years will help its case, he said.
"If the documentation is straightforward, I would expect they will get an 'A' at least," Mr. Ciccarone said.
Mr. Bedinghaus said that's what the county hopes for. While a lower rating probably would not hurt the county's interest rate too much - if at all - every little bit counts.
"These are big numbers we're dealing with," he said. "The difference between 5.7 percent and 5.8 percent on a $322 million bond issue - it can add up to a lot of money."
The county will interview finalists for its bond underwriting team Tuesday and plans to choose a team the next day. Officials hope to receive bond ratings by midmonth and issue bonds Oct. 14.
