Press Release|Public Finance
KBRA Affirms AA+ Rating, Stable Outlook on the Bi-State Development Agency of the Missouri-Illinois Metropolitan District Combined Lien Mass Transit Sales Tax Appropriation Bonds
12 Jun 2025 | New York
KBRA affirms the long-term rate of AA+ on Combined Lien Mass Transit Sales Tax Appropriation Bonds of the Bi-State Development Agency of the Missouri-Illinois Metropolitan District. The Outlook is Stable
Key Credit Considerations
Credit Positives
- Transit Sales Tax (TST) receipts provide sound coverage of maximum annual debt service (MADS).
- Debt service requirements are descending, and no additional debt is presently authorized.
- Use of TST receipts is narrowly restricted to the payment of debt service on the Bonds and for non-highway transit operations, reducing appropriation risk in KBRA’s view.
Credit Challenges
- TST collections are subject to legislative actions by the State, the County, and the City.
- The inherent volatility of TST receipts may be exacerbated by ongoing population decline in the jurisdictional boundaries of the City.
Rating Sensitivities
For Upgrade:
- Steady growth in transit sales tax receipts resulting in improved coverage as debt service costs decline.
For Downgrade:
- A trend of declining debt service coverage due to a decrease in transit sales tax receipts.
- Additional new money borrowing resulting in significant dilution of debt service coverage.
- A change in the Sponsors views regarding the essentiality of the System resulting in either i) a reduction in the TST appropriations by the Sponsors, or ii) a material reduction in the level of operating assistance provided to Bi-State Development from other governments.
To access ratings and relevant documents, click here.