OREANDA-NEWS. S&P Global Ratings assigned its 'A+' preliminary rating to Panhandle Economic Development Corp., Texas' series 2016 taxable lease revenue bonds (Pantex Plant Administrative Support Complex Project). Bond proceeds will finance the construction of a project that will be used by the U. S. Dept. of Energy (DOE), which will provide all funds for debt service. The rating is preliminary pending review of final closing documentation.

"The stable outlook reflects our rating outlook on the U. S.," said S&P Global Ratings credit analyst John Kenward.

The bond issuer was created as a public corporation by the city of Panhandle. We understand that bond proceeds will be used to construct a 343,000-square-foot administrative support complex at the DOE's Pantex Plant near Amarillo. The complex will provide office space for 1,100 federal and contractor employees at the nation's only nuclear weapons assembly and disassembly facility. The bonds are secured by rental payments from the DOE provided directly to the bond trustee through a lease agreement between Consolidated Nuclear Security LLC as lessee and Pantex ASC LLC, the building owner and borrower, as lessor.