Summary: Indiana Bond Bank; Appropriations

S&P Global Ratings assigned its 'AA+' long-term rating to the Indiana Bond Bank's series 2019A taxable common school fund (CSF) advancement purchase funding bonds. The outlook is stable. The bonds are secured by loan repayments from up to 69 individual school corporations, each of which has agreed to have state aid (subject to appropriation by the state of Indiana) withheld to repay the loans. Factors contributing to the 'AA+' rating include: Appropriated state aid that is withheld from participating school corporations (advancement payments) to pay advancement agreements; Very strong coverage of loans for each participant by its appropriated state aid; The state's long-standing commitment to school funding, demonstrated by a history of stable and predictable state aid payments to schools;

...schedules are established in the advancement agreements. The statute also authorizes the state BOF to sell these advancement agreements to the Indiana Bond Bank, in whole or in part, through an advancement acquisition and administrative agreement, thereby affording the bond bank the right to receive the withheld state aid payments (advancement payments). The bond bank is issuing the series 2019A bonds to purchase from the state the advancement agreements securing the loans issued by up to 69 individual school corporations. The state will then use the proceeds from selling the agreements to the bond bank to make future additional loans to school corporations from the CSF. The advancement acquisition and administrative agreement requires the SBOE, BOF, and state treasurer to take all actions necessary to execute and deliver the advancement payments to the trustee for the benefit of the bondholders. The bond bank has assigned its rights under the advancement acquisition and administrative...

Summary