Summary: Massachusetts Bay Transportation Authority; Sales Tax Jun 06
- ID: 1832150
- June 2006
- Region: Massachusetts
- Standard & Poors
The 'AAA' rating on Massachusetts Bay Transportation Authority's (MBTA) new senior sales tax revenue refunding bonds series 2006C and existing parity debt reflects: A dedicated revenue stream that cannot be reduced, backed by nondiversion and nonimpairment language; Dedicated revenues that are not subject to annual legislative appropriation; A steady trend of pledged revenue growth that includes a 1% broad-based statewide sales tax with a commonwealth-guaranteed base revenue amount that set a floor of $645 million, with an annual inflation adjustment, which began in July 2000; The underlying economic strength and diversity of the economy of Massachusetts ('AA' GO rating, stable outlook), which was affected by the national recession and is slowly recovering; and Strong projected debt service coverage, with a...
Companies mentioned in this report are:
- Massachusetts Bay Transp Auth
Action: New Rating
Action: Outlook: Stable
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included. SHOW LESS READ MORE >