Fitch Ratings has assigned an 'AA-' rating to Maine Municipal Bond Bank's (the bond bank) $50 million transportation infrastructure revenue bonds (TransCap program) series 2008A. The bonds, the first to be issued under this program, are expected to sell through negotiation Sept. 23, 2008 and are due Sept. 1, 2009-2023.
The 'AA-' rating reflects the security provided from satisfactory coverage by pledged revenues which are constitutionally dedicated to transportation and statutorily allocated to the TransCap fund, an adequate additional bonds test and the fifteen year amortization for program bonds. The rating also recognizes the relatively narrow pledge of motor fuel taxes, 45% of all pledged revenues, although indexing of the motor fuel taxes to the consumer price index somewhat mitigates this concern. The broader highway fund is not pledged. Pledged revenues represent about 10% of overall highway revenues. TransCap revenues to the bond bank are subject to biennial legislative allocation. The Rating Outlook is Stable.
