Fitch Ratings upgraded Massachusetts’ special obligation highway revenue bonds to AA-plus from AA with a stable outlook. The agency said the move was part of its continuous surveillance effort.
The bonds affected were consolidated loan of 2002 Series A and consolidated loan of 2005 Series A. They are special, limited obligations, payable from 6.86 cents of the commonwealth’s 21-cent gas tax.
Fitch based the action on solid debt service coverage and a closed lien that protects against dilution of coverage, a pledged motor fuels excise tax as a “generally stable source of revenue,” and the state’s fundamental strength, despite slow population growth.
