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KBRA Affirms A+/K1 Ratings for Pennsylvania Turnpike Commission Variable Rate Turnpike Revenue Bonds Series A of 2020

15 Aug 2024   |   New York

Contacts

KBRA affirms the bank-enhanced long-term rating for the Pennsylvania Turnpike Commission Variable Rate Turnpike Revenue Bonds, Series A of 2020 as well as the bank-enhanced short-term rating for the Bonds of K1. The ratings are based on: (i) an analysis of the structural and legal protections of the transaction and (ii) KBRA’s August 8, 2024 ratings for Barclays Bank PLC (the Bank), the provider of the irrevocable direct pay letter of credit (DPLC) supporting the Bonds.

Key Credit Considerations

The rating actions reflect the following key credit considerations:

Credit Positives

  • Strong structural and legal provisions of the irrevocable direct pay letter of credit effectuate substitution of credit and liquidity risk of the Bank for that of the Commission.

Credit Challenges

  • Reliance on direct pay letter of credit exposes bondholders to systematic risk of the financial institutions sector.

Rating Sensitivities

For Upgrade

  • Upgrade of the DPLC provider.

For Downgrade

  • Downgrade of the DPLC provider.

To access rating 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) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1005544

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