...NEW YORK (S&P Global Ratings) Nov. 14, 2018--S&P Global Ratings has lowered its long-term rating on the Kansas Department of Transportation's (KDOT) outstanding highway revenue bonds by two notches to '##' from '###'. The outlook is stable. "The downgrade reflects the application of our 'Priority Lien' criteria, which factors in both the strength and stability of the pledged revenues, as well as the general credit quality of Kansas as the obligor which collects and transfers the pledged revenue for debt service payment (the obligor's creditworthiness [OC])," said S&P Global Ratings credit analyst Ladunni Okolo. The priority-lien rating on these bonds is limited by our view of the gas tax revenues' close relationship to Kansas' creditworthiness (general obligation (GO) rating of '##-/Stable') and is constrained to one notch above the state's creditworthiness. The criteria were published Oct. 22, 2018, on RatingsDirect. The one-notch upward limitation on the gas tax rating compared to the...
