Press Release|Public Finance
KBRA Affirms AA+ Rating, Stable Outlook on the Bi-State Development Agency of the Missouri-Illinois Metropolitan District Combined Lien Mass Transit Sales Tax Appropriation Bonds
14 Jun 2024 | New York
KBRA affirms the long-term rate of AA+ on Combined Lien Mass Transit Sales Tax Appropriation Bonds of the Bi-State Development Agency of the Missouri-Illinois Metropolitan District. The Outlook is Stable
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Transit Sales Tax (TST) receipts have demonstrated low volatility and MADS coverage is sound.
- Debt service requirements are descending, and no additional debt is presently authorized.
- Use of TST receipts is narrowly restricted to the payment of debt service on the Bonds and for non-highway transit operations, reducing appropriation risk in KBRA’s view.
Credit Challenges
- TST collections are subject to legislative actions by the State, the County, and the City.
- The inherent volatility of TST receipts may be exacerbated by ongoing population decline in the jurisdictional boundaries of the City.
Rating Sensitivities
For Upgrade
- Steady trend of growth in transit sales tax receipts.
For Downgrade
- A trend of declining debt service coverage due to a decrease in transit sales tax receipts or an increase in debt service associated with the issuance of additional parity bonds.
- A change in the view of System essentiality on the part of the City or the County that either i) reduces the TST appropriation, or ii) results in a material reduction in the level of operating assistance provided to Bi-State Development from other governments.
To access rating and relevant documents, click here.