New York State's personal income tax (PIT) revenue bonds (education) series 2003A and B, sold through the New York State Dormitory Authority, are rated 'AA' and secured by payments made by the state to the trustee on behalf of the issuing conduit, derived from a portion of the PIT. Credit strength is derived from: The fact that the magnitude of the set-aside of the PIT for payments directly to the trustee provides strong security that effectively eliminates the risk of non-appropriation and protects against the potential for volatility in receipts, Solid legal covenants mirroring a revenue bond structure--not an appropriation credit structure, The historical strength of the PIT and its significance as a revenue source to the state, and The...
Companies mentioned in this report are:
- New York State
- Dorm Auth of the St of New York
Action: New Rating
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