“The Florida state government’s move to dissolve several independent special districts on June 1, 2023 creates significant risk to the credit quality of these districts, including Reedy Creek Improvement District (RCID), says Fitch Ratings. In response, Fitch placed the ‘AA-‘ rating on RCID’s ad valorem tax bonds and the ‘A’ rating on its utilities revenue bonds on Rating Watch Negative due to uncertainty in servicing the RCID debt post-dissolution. We expect the state will ultimately work with various stakeholders to resolve the uncertainty in a way that ensures timely repayment of RCID debt, with reconstitution of the district as one option specifically offered in the bill. The failure to do so could alter our view of Florida’s commitment to preserve bondholder rights and weaken our view of the operating environment for Florida governments” says Fitch Ratings in a wire update.