Alabama 21st Century Authority; Revenue - Utility, Other Aug 00
- ID: 2084668
- August 2000
- Region: Alabama
- Standard & Poors
Alabama 21st Century Authority's bonds are secured by a pledge of certain master settlement agreement payments to be received by the state of Alabama. The rating reflects a number of factors, including very strong coverage of debt service even under severe stress scenarios, including: The issuance of additional debt up to the annual debt service limit permitted by current state statutes, which could ultimately increase annual debt service from current projections of $4.5 million to $13 million by 2002 and $16 million by 2018; Declines in cigarette consumption, including a scenario that assumes a 4.5% decline in shipment volume for 2000 and a 3.5% annual decline thereafter; An increase in the market shares of the firms that are nonparticipating manufacturers...
Companies mentioned in this report are: Alabama 21st Century Auth
Action: New Rating
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