The Idaho Bond Bank Authority received a Aa1 rating from Moody’s Investors Service on $17.9 million of revenue bonds it planned to price this week.
The bond bank also received the same rating for $250 million in outstanding debt.
Proceeds from the current sale are secured by certificates of participation not subject to annual appropriation, according to the report.
The rating reflects the broad pledge of the state’s sales tax revenue, the state intercept mechanism and satisfactory payment-timing.
The rating also takes into account the average credit quality of current and prior participants.
The state’s issuer rating is Aa1 with a stable outlook.
Improvements in state sales tax revenues and multiple levels of security were cited as strengths by analysts.
The concentration among a small number of participants and the fact that the sales tax pledge also backs Idaho’s two school bond guaranty programs were listed by analysts as concerns.
