NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has assigned a long-term rating of AA+ with a stable outlook to the State of New York’s General Obligation Bonds Series 2015A Tax-Exempt Bonds, 2015B Taxable Bonds, and 2015C Tax-Exempt Refunding Bonds. This rating applies to all of the State’s outstanding General Obligation Bonds but exclude Bonds backed by a letter of credit or liquidity facility.
The Bonds are general obligations of the State, secured by its full faith, credit and taxing power. Pursuant to the State’s Constitution, General Obligation debt must be voter approved. The Constitution further provides that if the Legislature fails to appropriate the funds necessary to make debt service payments, the Comptroller must set aside the first available revenues to make such payments. KBRA views the security provisions supporting General Obligation debt in New York as very strong.
Proceeds of the Series 2015A Tax-Exempt Bonds and the Series 2015B Taxable Bonds will be used to finance capital expenditures for various environmental and transportation purposes throughout the state. The proceeds of the Series 2015C Tax-Exempt Refunding Bonds will be used to advance refund a portion of the State’s outstanding General Obligation debt.
This rating is based on KBRA’s U.S. State General Obligation Rating Methodology, published on March 28, 2012. In the process of assigning the rating, KBRA reviewed multiple sources of information and met with State management.
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KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).