S&P Global Ratings affirmed its 'AA' rating on several issuers participating in Massachusetts' qualified bond program. The outlook is negative and reflects the outlook on Massachusetts. S&P Global Ratings rates intercept or withholding programs that meet certain requirements one notch below the rating on the commonwealth's GO debt--on par with the rating on the commonwealth's appropriation debt--reflecting the appropriation nature of the intercept or withholding mechanism. Accordingly, if the commonwealth rating changes, so will the program rating. The Massachusetts Qualified Bond Program meets this requirement. Under the Qualified Bond Act (Massachusetts General Law, Chapter 44A), the state treasurer pays debt service directly to the paying agent and withholds the amount of the payment from the borrower's annual state aid appropriation.
