Self-supporting debt

Bonds sold to finance a project that will produce enough revenue through tolls or other charges to retire the debt . See: revenue bond.

Self-Supporting Debt

A bond, especially a municipal bond, where the coupons and principal are paid with funding from the project the debt seeks to finance. It may be used, for example, to build a hospital or a toll bridge, and bondholders are repaid with the revenue the hospital or toll bridge derives. Self-supporting debt is usually slightly higher risk than a general obligation bond because if the project fails to generate revenue, the bond will default. However, self-supporting debt is generally low risk and highly liquid.

References in periodicals archive ?

Risks around the expected growth of self-supporting debt could pose potential rating pressure, in the event that funded projects require general government support.

Fitch Ratings affirms Province of British Columbia's IDRs at 'AAA'

self-supporting debt bonds at a value of USD 400 million for the benefit of

KAMCO makes net profits of KD 1.8 mln for ''10

When practical, the city will develop, authorize, and issue revenue, special fee, or other self-supporting debt instruments instead of general obligation bonds.

Circumscribing debt issuance with written policies. (Best Practices)

3% of revenue, and include self-supporting debt paid from non-tax revenues including utility revenues of the provincial-owned BC Hydro.

Fitch Affirms Province of British Columbia, Canada's Rating at 'AAA'; Outlook Stable

When self-supporting debt is excluded, Washington County is closer to the average ratios for the Maryland peer group (see Exhibit 4, for example).

Measuring Debt Capacity: The Washington County, Maryland Experience

5 million and includes total borrowing of over $112 million, compared to about $767 million of outstanding debt excluding self-supporting debt.

Fitch Rates Richmond, VA's $123MM GOs 'AA+'; Outlook Stable

Overall net debt excludes self-supporting debt that is unlikely to be paid from the tax base itself because it has its own revenue stream (i.