The long-term rating continues to reflect the ample coverage and stable nature of most revenues pledged to repayment of Special Tax Obligation Bonds, descending debt service requirements, and a robust legal framework that includes a covenant for the State of Connecticut (the State) to provide pledged revenues in each fiscal year sufficient to provide at least 2.0x annual debt service coverage. If debt service coverage does not meet the 2.0x requirement, the covenant requires that the State must pass legislation within one year adjusting pledged revenues to satisfy the coverage requirement. Such a covenant is a relative rarity in the broader category of special tax financings.
Proceeds of the 2026 Series A Bonds (the Bonds) will be used, together with other legally available funds, to refund certain outstanding bonds for present value savings, and to pay the cost of issuance. Special Tax Obligation Bonds are payable from a diverse basket of state revenues derived largely…
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