Summary: Arizona Transportation Board; Gas Tax

S&P Global Ratings has lowered its long-term rating to 'AA+' from 'AAA' on the Arizona Transportation Board's senior-lien highway revenue refunding bonds outstanding, issued for the Arizona Department of Transportation (ADOT). 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 Arizona, the obligor which collects and transfers the pledged revenue for debt service payment (the obligor's creditworthiness [OC]). The criteria were published Oct. 22, 2018, on RatingsDirect. The priority-lien rating on these bonds is limited by our view of Arizona's creditworthiness [AA/Stable] and is constrained to one notch above the state's creditworthiness. The one-notch upward

...S&P Global Ratings has lowered its long-term rating to '##+' from '###' on the Arizona Transportation Board's senior-lien highway revenue refunding bonds outstanding, issued for the Arizona Department of Transportation (ADOT). 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 Arizona, the obligor which collects and transfers the pledged revenue for debt service payment (the obligor's creditworthiness [OC]). The criteria were published Oct. 22, 2018, on RatingsDirect. The priority-lien rating on these bonds is limited by our view of Arizona's creditworthiness [##/Stable] and is constrained to one notch above the state's creditworthiness. The one-notch upward limitation on the gas tax rating compared to the state's general obligation (GO) rating reflects our view that the bonds do not benefit from limited scope of operations or extraordinary...

Summary