Press Release|Public Finance

KBRA Assigns AAA Rating to State of Ohio General Obligation Highway Capital Improvement Bonds, Series Y; Affirms Rating for Parity Bonds

3 Nov 2023   |   New York


KBRA assigns a long-term rating of AAA to the State of Ohio General Obligation Highway Capital Improvement Bonds, Series Y and affirms the long-term rating of AAA for parity General Obligation Highway Capital Improvement Bonds. The Outlook remains Stable.

Key Credit Considerations

The rating actions reflect the following key credit considerations:

Credit Positives

  • Coverage from pledged revenues is exceptionally strong. Receipts in FY 2023 provide coverage of 25.5x pro forma maximum annual debt service.
  • The bonds are secured by the general obligation pledge of the State with additional credit protection provided by the pledged highway revenues, which effectively puts HCIB bondholders in a priority position relative to GO bondholders.

Credit Challenges

  • Socioeconomic indicators including population, employment and gross state product growth lag the U.S.

Rating Sensitivities

For Upgrade

  • Not applicable at AAA rating level.

For Downgrade

  • Significant deterioration in socioeconomic indicators relative to the U.S.

To access rating and relevant documents, click here.


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