Summary: North Carolina; Federal or State Grant Programs

S&P Global Ratings assigned its 'AA' long-term rating to North Carolina's proposed $600 million series 2019 grant anticipation revenue vehicle (GARVEE) bonds. At the same time, S&P Global Ratings affirmed its 'AA' long-term rating and underlying rating (SPUR) on the state's GARVEE bonds outstanding. The outlook is stable. The rating reflects our opinion of the following factors: Strong pro forma maximum annual debt service (MADS) coverage, with MADS coverage of approximately 6.8x based on 2018 actual receipts inclusive of potential additional borrowing; A well-defined process for assuring annual deposits of pledged revenue into the bond payment fund, as outlined in a flexible memorandum of agreement (MOA) between the Federal Highway Administration (FHWA), the state treasurer, and the North Carolina Department

...S&P Global Ratings assigned its '##' long-term rating to North Carolina's proposed $600 million series 2019 grant anticipation revenue vehicle (GARVEE) 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. The rating reflects our opinion of the following factors: + Strong pro forma maximum annual debt service (MADS) coverage, with MADS coverage of approximately 6.8x based on 2018 actual receipts inclusive of potential additional borrowing; + A well-defined process for assuring annual deposits of pledged revenue into the bond payment fund, as outlined in a flexible memorandum of agreement (MOA) between the Federal Highway Administration (FHWA), the state treasurer, and the North Carolina Department of Transportation (NCDOT) that also details approval of each project, as authorized for federal reimbursement of debt service payments; + A strong additional bonds test that requires...

Summary