KBRA Affirms Bank-Enhanced AA-/K1+ Ratings for Pennsylvania Turnpike Commission Variable Rate Turnpike Revenue Bonds Series of 2020 (LOC-Backed)

KBRA affirms the bank-enhanced long-term rating of AA- with a Stable Outlook as well as the bank-enhanced short-term rating of K1+ for the Pennsylvania Turnpike Commission Variable Rate Turnpike Revenue Bonds Series of 2020. The bonds initially and presently bear interest at a weekly rate and will be subject to mandatory tender upon conversion to an alternate rate period. The bonds are variable rate demand obligations with credit and liquidity support provided by an irrevocable direct pay letter of credit issued by TD Bank, N.A., a subsidiary of The Toronto-Dominion Bank. The ratings are based on an analysis of the structural and legal protections of the transaction and KBRA’s long-term and short-term rating of the Bank, affirmed on May 2, 2024.

Key Credit Considerations

The ratings were affirmed because of the following key credit considerations:

Credit Positives

Credit Challenges

Rating Sensitivities

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