Kentucky Turnpike Authority Economic Development Road Revenue Bond Rating Lowered To 'A-' On Application Of Criteria

CHICAGO (S&P Global Ratings) Aug. 29, 2018--S&P Global Ratings has lowered its rating on the Kentucky Turnpike Authority's economic development road revenue bonds three notches to 'A-' from 'AA-'. The outlook is stable. "The downgrade reflects the application of our new 'Issue Credit Ratings Linked to U.S. Public Finance Obligors? Creditworthiness' criteria and our view of increasing financial pressures, primarily pension contributions, at the state level," said S&P Global Ratings credit analyst Timothy Little. The criteria were published Jan. 22, 2018, on RatingsDirect. In our opinion, the structure of the pledge relative to Kentucky's fiscal profile under our "Issuer Credit Ratings Linked" criteria aligns with that of the state's appropriation rating and other lease appropriation obligations of its road fund,

...CHICAGO (S&P Global Ratings) Aug. 29, 2018--S&P Global Ratings has lowered its rating on the Kentucky Turnpike Authority's economic development road revenue bonds three notches to 'A-' from '##-'. The outlook is stable. "The downgrade reflects the application of our new 'Issue Credit Ratings Linked to U.S. Public Finance Obligors' Creditworthiness' criteria and our view of increasing financial pressures, primarily pension contributions, at the state level," said S&P Global Ratings credit analyst Timothy Little. The criteria were published Jan. 22, 2018, on RatingsDirect. In our opinion, the structure of the pledge relative to Kentucky's fiscal profile under our "Issuer Credit Ratings Linked" criteria aligns with that of the state's appropriation rating and other lease appropriation obligations of its road fund, which we also rate. The rating on the obligations is one notch off the state's issuer credit rating (ICR) and will move in tandem with the state's ICR. We view these bonds as having...

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