KBRA Assigns AAA Rating to State of Ohio General Obligation Highway Capital Improvement Bonds, Series Y; Affirms Rating for Parity Bonds
KBRA assigns a long-term rating of AAA to the State of Ohio General Obligation Highway Capital Improvement Bonds, Series Y and affirms the long-term rating of AAA for parity General Obligation Highway Capital Improvement Bonds. The Outlook remains Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Coverage from pledged revenues is exceptionally strong. Receipts in FY 2023 provide coverage of 25.5x pro forma maximum annual debt service.
- The bonds are secured by the general obligation pledge of the State with additional credit protection provided by the pledged highway revenues, which effectively puts HCIB bondholders in a priority position relative to GO bondholders.
Credit Challenges
- Socioeconomic indicators including population, employment and gross state product growth lag the U.S.
Rating Sensitivities
For Upgrade
- Not applicable at AAA rating level.
For Downgrade
- Significant deterioration in socioeconomic indicators relative to the U.S.
To access rating and relevant documents, click here.
Methodologies
Public Finance: U.S. Special Tax Revenue Bond Rating Methodology
Public Finance: U.S. State General Obligation Rating Methodology
ESG Global Rating Methodology
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.
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