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KBRA Affirms AAA Rating for State of Ohio General Obligation Highway Capital Improvement Bonds

23 Oct 2025   |   New York

Contacts

KBRA affirms the long-term rating of AAA with a Stable Outlook for the State of Ohio (the State) General Obligation Highway Capital Improvement Bonds (HCIBs).

Key Credit Considerations

The rating affirmation reflects the following key credit considerations:

Credit Positives

  • Double-barreled nature of the security, consisting of a pledge of both constitutionally dedicated highway taxes and the State’s general obligation, effectively places HCIBs in a priority position relative to the State’s stand-alone general obligation bonds.
  • Exceptionally strong coverage (27.3x, FY 2025) of debt service from constitutionally dedicated pledged revenues.
  • Risk of overleveraging minimized given debt cap limiting outstanding HCIBs to a maximum of $1.2 billion.

Credit Challenges

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

Rating Sensitivities

For Upgrade

  • Not applicable at the AAA rating level

For Downgrade

  • Significant deterioration in pledged revenue's or the State's general credit fundamentals

To access ratings and relevant documents, click here.

Methodologies

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1011940