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:
- 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.
- Socioeconomic indicators including population, employment and gross state product growth lag the U.S.
- Not applicable at AAA rating level.
- Significant deterioration in socioeconomic indicators relative to the U.S.
To access rating and relevant documents, click here.