Press Release|Public Finance
KBRA Assigns A+ Rating, Stable Outlook, to Colorado Statewide Bridge and Tunnel Enterprise Senior Infrastructure Revenue Bonds, Series 2025A
19 Mar 2025 | New York
KBRA has assigned a long-term rating of A+, with a Stable Outlook, to Colorado Statewide Bridge and Tunnel Enterprise Senior Infrastructure Revenue Bonds, Series 2025A.
Key Credit Considerations
The rating was assigned because of the following key credit considerations:
Credit Positives
- Continued population growth is expected in the State, which will likely track growth in motor vehicle registrations, and the related Bridge Surcharge fees.
- BTE covenants to not reduce Bridge Surcharges while the Bonds are outstanding.
- Pledged BTE Bridge Surcharge receipts have been generally steady.
Credit Challenges
- Bridge Surcharges have been imposed at the maximum allowable level.
- Lack of a debt service reserve fund, in conjunction with the Bonds being primarily secured by a third lien position on the revenue stream.
Rating Sensitivities
For Upgrade
- Improved debt service coverage, whether due to additional pledged revenues or increased vehicle registrations in the State of Colorado.
For Downgrade
- BTE has determined that it is currently classified as an enterprise, therefore TABOR limitations do not apply. However, the enterprise status must be determined on an annual basis which requires ongoing monitoring. If disqualified as an enterprise, BTE could face spending and revenue limitations and require voter approval for the issuance of debt.
To access ratings and relevant documents, click here.