Official Statements and Rating Agency Reports

Official Statements

Rating Agencies Reports


Credit Enhancements


The VMBB uses a variety of means and tools to enhance the credit of its bond issues. Besides the interest and principal payments made by each borrower, VMBB has two immediate available sources of funds to meet a debt service funding shortfall.

    1. The VMBB has a special bond reserve fund. By Statute, funds are deposited into a Debt Service Reserve Fund to be used to cure any late or missed payments – http://www.leg.state.vt.us/statutes/fullsection.cfm?Title=24&Chapter=119&Section=04671.
    2. The VMBB’s General Operating reserve fund may also be used to cure any borrower late payments.

The VMBB has never had a late payment that required the use of the Debt Service Reserve Fund or the General Operating Reserve Fund to cure the late payment.

In addition to the credit enhancement provided by reserve funds, the VMBB minimizes investor risk by requiring borrowers to make accelerated principal repayments through annual principal payments in equal or declining amounts. Excepting for the few revenue loans outstanding in the VMBB’s loan portfolio, borrowers may not use mortgage-style amortization schedules.

By policy, the VMBB only issues fixed-rate date. It does not issue variable rate debt, auction rate securities, or enter into interest rate swap agreements.

State of Vermont Support for the VMBB


The VMBB’s authorizing statutes can be found at – http://www.leg.state.vt.us/statutes/fullchapter.cfm?Title=24&Chapter=119.

The State of Vermont has NOT pledged its full faith and credit to the repayment of VMBB bonds – http://www.leg.state.vt.us/statutes/fullsection.cfm?Title=24&Chapter=119&Section=04621.

The State has provided the VMBB with its Moral Obligation. Should the VMBB ever need to draw on its Debt Service Reserve Fund, the State is morally obligated but not required to appropriate funds to cover the draw. The VMBB’s Moral Obligation statute can be found at – http://www.leg.state.vt.us/statutes/fullsection.cfm?Title=24&Chapter=119&Section=04675.

Should a borrower default on a loan payment to the VMBB, the State Treasurer is authorized to intercept any funds due that borrower by the State and transmit them to the VMBB until the amounts transmitted equal the default amount – http://www.leg.state.vt.us/statutes/fullsection.cfm?Title=24&Chapter=119&Section=04555.

Vermont Statutes do not afford Vermont’s municipalities the ability to declare bankruptcy and avoid debt repayment.

Finance Team Members


Members of the VMBB financing team include:

      • General Counsel: Deppman & Foley, P.C.
      • Bond Counsel: Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC
      • Financial Advisor: Lamont Financial Services Corporation, Omnicap Group LLC
      • Arbitrage Rebate: Omnicap Group LLC
      • Trustee: U.S. Bank, N.A.
      • Underwriter: Citigroup Global Markets
      • Co-manager: Morgan Stanley

Selling Group Members


      • Citigroup/UBS
      • Morgan Stanley/Smith Barney
      • Merrill Lynch/Bank of America
      • Wells Fargo
      • Raymond James
      • Robert W. Baird & Co.

MSRBs EMMA Site


Municipal Services Rulemaking Board’s Electronic Municipal Market Access (“EMMA”) website “…is the official repository for information on virtually all municipal bonds, providing free public access to official disclosures, trade data and other information about the municipal securities market.” Click here, http://emma.msrb.org/Home/Index, for access to the EMMA site and searchable information on the VMBB’s outstanding bonds and disclosure filings.