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Summary: Michigan Michigan State Trunk Line Fund; Gas Tax Oct 09 Product Image

Summary: Michigan Michigan State Trunk Line Fund; Gas Tax Oct 09

  • ID: 2029572
  • October 2009
  • Region: Michigan
  • Standard & Poors

FEATURED COMPANIES

  • Michigan
  • Michigan St Trunk Line Fd
  • MORE

Abstract
The 'AA+' rating on Michigan State Trunk Line Fund's refunding bonds, series 2009, is based on the state's pledge of motor fuel taxes and miscellaneous fees. The rating reflects: Good maximum annual debt service (MADS) coverage of 4.5x on all debt supported by trunk line revenues. based on $721 million of revenues in fiscal 2008 and projected similar coverage in 2009; Strong legal provisions highlighted by a 2x historical additional bonds test; The likelihood that debt service coverage will not approach the 2x test, since revenues remaining after debt service is paid are needed to fund programs by the Michigan Department of Transportation (MDOT); and Weaker, although still solid overall, economic fundamentals in Michigan (AA-/Stable). Risks associated with the inherent...

Companies mentioned in this report are:
- Michigan St Trunk Line Fd
- Michigan

Action: Affirmed
Action: New Rating
Action: Outlook: Stable

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