Summary: Michigan Michigan State Trunk Line Fund; Gas Tax Oct 09
- ID: 2029572
- October 2009
- Region: Michigan
- Standard & Poors
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
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 >