...S&P Global Ratings assigned its '##' long-term rating to North Carolina's series 2017 grant anticipation revenue vehicle (GARVEE) refunding bonds. At the same time, S&P Global Ratings affirmed its '##' long-term rating and underlying rating (SPUR) on the state's GARVEE bonds outstanding. The outlook is stable. Securing the bonds are receipts solely from Title 23 federal aid transportation reimbursements and designated for project-specific debt service under a memorandum of agreement (MOA) with the Federal Highway Administration (FHWA), North Carolina Department of Transportation (NCDOT), and the state treasurer. Bonds are special, limited obligations payable only from the trust estate. North Carolina has a direct GARVEE program whereby the FHWA reimburses the state for debt service on specifically approved, federally eligible projects. In practice, the state converts just a portion of its total obligation authority for the federally approved project funding in an amount equal to principal...
