Michigan Michigan State Trunk Line Fund; Gas Tax Jun 06
- ID: 2029764
- June 2006
- Region: Michigan
- Standard & Poors
The 'AA' rating on Michigan's State Trunk Line Fund bonds series 2006 reflects: Strong maximum annual debt service (MADS) coverage, which was 4.8x based on $766 million of revenues in fiscal 2005; Strong legal provisions highlighted by a 2x historical additional bonds test; and 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). Risks associated with the inherent potential volatility of the motor vehicle-related taxes securing this issue, and decreasing coverage levels, mitigate these strengths. The bonds are secured by a first lien on motor fuel taxes and miscellaneous fees as allocated by Act 51 of Michigan's...
Companies mentioned in this report are:
- Michigan St Trunk Line Fd
Action: New Rating
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.
Research Type: Full Analysis