Sales Tax Securitization Corporation, IL Rating Report

Rating Summary

The long-term ratings reflect the strong bondholder protections provided by the Sales Tax Securitization Corporation (“STSC” or the “Corporation”) Authorizing Act, the broad array of Sales Tax Revenues pledged under the applicable Senior Lien, Second Lien or Third Lien Indenture and subject to the statutory lien provided by the Act, the diverse economic base in which the pledged sales taxes are levied, and the strong coverage, to date, of aggregate maximum annual debt service on outstanding Sales Tax Securitization Bonds provided by the pledged Sales Tax Revenues.

State law, the bankruptcy remoteness of the Corporation, and provisions of the Sale Agreement and the Indenture provide a legal framework that KBRA believes insulates the pledged Sales Tax Revenues and the Corporation from the operating and credit conditions of the City of Chicago (the “City”).

Counterbalancing credit factors include the City’s high overall sales tax rate, which has the potential to adversely…