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KBRA Affirms AA- Rating with Stable Outlook for the Turnpike Authority of Kentucky Economic Development Road Revenue Bonds (Revitalization Projects)

26 May 2026   |   New York

Contacts

KBRA affirms the long-term rating of AA- with a Stable Outlook for the Turnpike Authority of Kentucky Economic Development Road Revenue Bonds (Revitalization Projects).

Key Credit Considerations

Credit Positives

  • History of consistent growth in Road Fund revenues resulting in strong coverage of annual debt service.
  • Rapid repayment of outstanding debt with no authorization to issue new money financing in the current biennium.
  • The Commonwealth’s use of lease financing is the primary funding mechanism for essential purpose road and highway infrastructure, which is enhanced by the constitutional dedication of Road Fund revenues used for lease to transportation purposes.

Credit Challenges

  • Wealth and income metrics lag both the region and the U.S.
  • Road Fund revenues are subject to economic volatility, although there is a statutory floor on Motor Fuel Tax revenues.

Rating Sensitivities

For Upgrade

  • Material improvement in coverage due to an increase in available Road Fund Revenues and/or a reduction in annual lease rental payments.
  • The imposition of additional covenants that provide further bondholder protection.

For Downgrade

  • Significant reduction in debt service coverage levels due to decline in available Road Fund Revenues and/or the issuance of additional debt.
  • Any failure on the part of the Commonwealth to biennially renew the lease or to appropriate lease rental payments.

To access ratings 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), 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: 1015164