KBRA Affirms AAA Rating and Stable Outlook to TriMet's (OR) Senior Lien Payroll Tax Revenue Bonds
18 Sep 2024 | New York
KBRA affirms the long-term rating of AAA with a Stable Outlook assigned to the Tri-County Metropolitan Transportation District of Oregon's (TriMet) Senior Lien Payroll Tax Revenue Bonds.
KBRA’s rating affirmation recognizes the diverse and strong economic base, a highly reliable pledged revenue source, with demonstrated resilience during economic downturns, high debt service coverage margins and an additional bonds test that protects against overleveraging. Credit challenges are limited and center on unanticipated significantly higher debt issuance which would materially increase leverage and lower debt service coverage.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Pledged tax revenues provide ample annual debt service coverage and coverage of the maximum annual debt service requirement.
- Sizeable, diverse metropolitan area that serves as an economic engine for the State.
- Highly resilient pledged revenue base with only three years of modest decline recorded since 1990.
Credit Challenges
- Potential for significant additional debt issuance that would sharply increase outstanding senior lien payroll tax revenue bond indebtedness.
Rating Sensitivities
For Upgrade
- Not applicable.
For Downgrade
- Significant economic decline, restructuring of TriMet's boundaries, or voter initiative/referedum that results in material reduction in pledged payroll taxes and debt service coverage.
To access rating and relevant documents, click here.