This document describes KBRA’s general rating methodology as it pertains to revenue bonds issued by public sector entities. It is used as an overarching guide to assessing revenue-based financings for various types of public sector entities, including municipal enterprises, special districts, not-for-profit entities and other public finance sectors. The methodology identifies the key rating determinants used in the rating assessment and discusses how the determinants may be applied in making a rating determination.
This methodology covers a wide range of issue types. As a result, the relative importance of each Rating Determinant may be affected by the sector in which the issuer operates, the size and scope of its operations and the regulatory and/or competitive dynamics in the sector. For issuers that operate in a sector that is highly regulated, a greater emphasis may be placed on management’s relationship with the regulatory body as well as their ability to stay…
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