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KBRA Affirms AA Rating, Stable Outlook, to Jacksonville Transportation Authority Senior Lien Local Option Gas Tax Revenue Bonds

12 Sep 2025   |   New York

Contacts

KBRA has affirmed the long-term rating of AA, with a Stable Outlook, to Jacksonville Transportation Authority Senior Lien Local Option Gas Tax Revenue Bonds.

Key Credit Considerations

The rating was affirmed because of the following key credit considerations:

Credit Positives

  • The gas tax, while narrow, is assessed on a highly essential product and assessed on a large base. Jacksonville is among the largest US cities and it continues to experience growth.
  • JTA’s share of Pledged Revenues has comfortably covered debt service, even throughout the pandemic. It is expected that this revenue stream will remain supportive of coverage based on a decline in debt service associated with the refunding.
  • The Bonds have a short average life, with a final maturity on August 31, 2036. No additional parity debt is planned to fund the completion of JTA projects, although additional debt is authorized in accordance with the Trust Agreement.

Credit Challenges

  • Pledged Revenues are vulnerable to shifts in consumption related to fuel price fluctuations, changing driving patterns, and increasingly fuel-efficient vehicles.
  • Structural weaknesses in security provisions include the lack of a debt service reserve fund, and the termination of the Interlocal Agreement within 30 days of the final maturity of the Series 2024 and Series 2025 Bonds (although the LOGT itself has been extended to August 1, 2046). This structural shortcoming limits flexibility in the event of a shortfall or delay in deposit of Pledged Revenues.

Rating Sensitivities

For Upgrade

  • Growth in Pledged Revenues that generates increased debt service coverage.

For Downgrade

  • Debt service coverage declines to a level no longer consistent with the rating level, due to changes in consumption patterns.

To access ratings and relevant documents, click here.

Methodologies

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1011293