The 'A' rating reflects both the good quality of the revenue streams pledged to the infrastructure bank as well as an additional bonds test
that would allow little margin should bonds be issued to the maximum allowed.
This credit feature, in conjunction with the adequacy of the additional bonds test
and the record of state support for the highway and bridge capital program, allows for a rating on par with that assigned to New York's general obligation (GO) debt.
The 'A+' rating on the sales and use tax bonds reflects the stable tax performance record, strong projected coverage levels, and very ample additional bonds test
Underlying the 'AA-' rating on the PIT bonds are the importance of the PIT to state finances (about 60% of tax receipts), the ample portion set aside for debt service, the trapping of funds if appropriation is not made, and the additional bonds test
The subordinate additional bonds test
(ABT) requires that historical statutory revenues cover at least 3.
The senior lien additional bonds test
requires a minimum of 1.
Both the senior and subordinate liens are subject to an additional bonds test
that conservatively discounts historical GGRT receipts and projected pledged revenues based on the credit quality of the loans; this provides protection against the programs becoming overleveraged.
Underlying the 'AA-' rating on the PIT bonds are the importance of the PIT (about 60% of state tax receipts), the ample portion set aside for debt service, the trapping of funds if appropriation is not made, and the additional bonds test
The substantial revenues available from the lottery, the broad debt service coverage, and restrictive 4 times (x) additional bonds test
, as well as the state's involvement, particularly in its reserve fund commitment, offset the discretionary nature of lottery purchases, the increasingly heavy dependence on video lottery, and potential competition for gambling dollars.
25 times (x) annual debt service and an additional bonds test
of historical revenues at least 1.
Additional bonds are planned by the city, but conservative revenue growth assumptions and additional bonds test
should still produce comfortable coverage levels in subsequent years.
0 times (x) of maximum annual debt service required by the additional bonds test