ENGLEWOOD (S&P Global Ratings) June 13, 2023--S&P Global Ratings assigned its 'AAA' long-term rating to the Sacramento Transportation Authority (STA), Calif.'s proposed $301.6 million Measure A sales tax revenue refunding bonds, series 2023.
At the same time, S&P Global Ratings affirmed its 'AAA' long-term rating on the authority's Measure A sales tax revenue bonds outstanding, including the 'AAA' long-term component of its dual rating on the authority's series 2015A and 2014A Measure A sales tax revenue bonds (AAA/A-1), reflecting the authority's priority lien pledge and a standby letter of credit provided by Sumitomo Mitsui Banking Corp., and on the authority's series 2009C Measure A sales tax revenue bonds (AAA/A-1), reflecting the authority's priority lien pledge and a standby bond purchase agreement provided by U.S. Bank National Assn.
The outlook is stable.
Bond proceeds will be used to refund the $318.3 million in series 2009C, 2014A, and 2015A variable-rate bonds outstanding, terminate the interest rate swaps relating to the bonds, and pay cost of issuance.
"The rating reflects our view of such factors as STA's very strong economic fundamentals, extraordinarily strong maximum annual debt service coverage, and general creditworthiness," said S&P Global Ratings credit analyst Kayla Smith.
The stable outlook reflects our expectation that coverage will remain what we consider extraordinarily strong given strong sales tax revenue growth and a lack of additional debt plans.
