KBRA Releases Rating Report for Chicago’s Sales Tax Securitization Corporation’s Sales Tax Securitization Bonds Series 2017 A&B

NEW YORK--()--Kroll Bond Rating Agency (KBRA) has assigned an AAA long-term rating to Chicago’s Sales Tax Securitization Corporation’s Sales Tax Securitization Bonds Series 2017 A and Taxable Series 2017B.

KBRA believes the Bonds have strong legal and structural protections that insulate its pledged Sales Tax Revenues from day-to-day operating and financial risk of the City. After review of the Public Act 100-0023, the transaction documents and legal opinions, KBRA believes these protections apply even in the unlikely event of an insolvency or bankruptcy of the City.

After reaching the opinion that the Corporation has effectively and irrevocably acquired the pledged revenues through a true sale, and that the pledged revenues are insulated from ongoing operating and financial risk of the City, KBRA then examined and developed stress scenarios of the cash flow derived from the pledged revenues.

In all of the considered stress cases, the pledged revenues substantially covered annual debt service requirements. KBRA stated that even under severe economic downturns and other stressful scenarios, the pledged Sales Tax Revenues will remain more than sufficient to meet timely principal and interest requirements on the Bonds.

To read the report, please click here.

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About Kroll Bond Rating Agency

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).

Contacts

Analytical:
Kroll Bond Rating Agency
William Cox, 646-731- 2472
Managing Director
wcox@kbra.com
or
Alice Cheng, 646-731-2403
Associate Director
acheng@kbra.com
or
Lenny Giltman, 646-731-2378
Managing Director
lgiltman@kbra.com
or
Xilun Chen, 646-731-2431
Senior Director
xchen@kbra.com
or
Karen Daly, 646-731-2347
Senior Managing Director
kdaly@kbra.com

Contacts

Analytical:
Kroll Bond Rating Agency
William Cox, 646-731- 2472
Managing Director
wcox@kbra.com
or
Alice Cheng, 646-731-2403
Associate Director
acheng@kbra.com
or
Lenny Giltman, 646-731-2378
Managing Director
lgiltman@kbra.com
or
Xilun Chen, 646-731-2431
Senior Director
xchen@kbra.com
or
Karen Daly, 646-731-2347
Senior Managing Director
kdaly@kbra.com