Summary: Regional Transportation Authority, Illinois; Sales Tax

S&P Global Ratings revised its outlook to negative from stable and affirmed its 'AA' rating on the Regional Transportation Authority, Ill.'s (RTA) outstanding general obligation bonds. The negative outlook reflects our view that we expect sales tax revenue collections will continue to be weakened in the coming months, and potentially beyond, due to recessionary pressure. The GO bonds could be downgraded if actual revenue materially underperforms current projections. We believe the risks facing the RTA during the next year will be key to future rating direction. The 'AA' rating reflects the application of our "priority-lien" criteria, published Oct. 22, 2018, which factors in both the strength and stability of the pledged revenue, as well as RTA's general credit quality. The

...S&P Global Ratings revised its outlook to negative from stable and affirmed its '##' rating on the Regional Transportation Authority, Ill.'s (RTA) outstanding general obligation bonds. The negative outlook reflects our view that we expect sales tax revenue collections will continue to be weakened in the coming months, and potentially beyond, due to recessionary pressure. The GO bonds could be downgraded if actual revenue materially underperforms current projections. We believe the risks facing the RTA during the next year will be key to future rating direction. The '##' rating reflects the application of our "priority-lien" criteria, published Oct. 22, 2018, which factors in both the strength and stability of the pledged revenue, as well as RTA's general credit quality. The GO bonds are secured by RTA's full faith and credit GO pledge and first-lien pledge of sales tax and public transportation (PTF) revenue, as well as other lawfully available funds received by the authority....

Summary