Press Release|Public Finance
KBRA Affirms AAA Rating for State of Ohio General Obligation Highway Capital Improvement Bonds
29 Oct 2024 | New York
KBRA affirms the long-term rating of AAA with a Stable Outlook for the State of Ohio General Obligation Highway Capital Improvement Bonds.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Coverage from pledged revenues is exceptionally strong with FY 2024 receipts providing coverage of 26.8x MADS.
- The bonds are secured by the State’s general obligation pledge with additional credit protection provided by the pledged highway revenues. The security structure effectively puts HCIB bondholders in a priority position relative to GO bondholders.
Credit Challenges
- Socioeconomic indicators including population, employment and gross state product growth lag the U.S.
Rating Sensitivities
For Upgrade
- Not applicable at AAA rating level.
For Downgrade
- Significant deterioration in pledged revenues and/or socioeconomic indicators.
To access ratings and relevant documents, click here.