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KBRA Affirms AAA Rating with Stable Outlook for Commonwealth of Massachusetts - Commonwealth Transportation Fund Revenue Bonds

17 Sep 2026   |   New York

Contacts

KBRA affirms the long-term rating of AAA with a Stable Outlook for the Commonwealth of Massachusetts - Commonwealth Transportation Fund (CTF) Revenue Bonds.

Key Credit Considerations

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

Credit Positives

  • Very broad and resilient nature of CTF pledged revenues which, to date, have generated more than 4.0x coverage of maximum annual debt service.
  • Extensive legal protections that collectively and effectively insulate pledged revenues from Commonwealth budget operations.
  • The Commonwealth’s diverse, wealthy, and growing economy.

Credit Challenges

  • The motor fuels portion of pledged revenues (~53.0% of FY 2026 pledged revenues) is economically sensitive and vulnerable to declines during recessionary periods.
  • Longer term, structural shifts in fuel consumption patterns driven by the continued phase-in of electric, hybrid, and increasingly efficient conventional vehicles may pressure the motor fuels portion of pledged revenues.

Rating Sensitivities

For Upgrade

  • Not Applicable.

For Downgrade

  • An unlikely scenario where there was a substantial and sustained decline in pledged revenues.

To access ratings and relevant documents, click here.

Methodology

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: 1017053