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
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