KBRA Affirms AA+ Rating with Stable Outlook for Bi-State Development Agency of the Missouri-Illinois Metropolitan District Combined Lien Mass Transit Sales Tax Appropriation Bonds
22 Jun 2023 | New York
KBRA affirms the long-term rating of AA+ with a Stable Outlook for the Bi-State Development Agency of the Missouri-Illinois Metropolitan District Combined Lien Mass Transit Sales Tax Appropriation Bonds.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
- TST receipts have demonstrated resilience and Combined Lien MADS coverage is sound.
- Debt service requirements for Combined Lien Bonds is descending and no additional debt is presently authorized.
- Narrow limitations on the use of pledged sales tax revenues for non-highway public transportation reduces appropriation risk.
- Transit sales tax collections are subject to legislative actions by the State, the County, and the City.
- The inherent volatility of the sales tax revenue pledge may be exacerbated by the declining population base evidenced in the jurisdictional boundaries of the City.
- Significant declines in ridership experienced since at least 2015 have been exacerbated by the pandemic.
- Steady trend of growth in the economic resource base of the County and City that results in growing transit sales tax receipts.
- A decline in debt service coverage due to a decrease in transit sales tax revenues or an increase in debt service associated with the issuance of additional parity bonds.
- Reduced essentiality of the System due to continued ridership declines.
To access rating and relevant documents, click here.