Kentucky

The latest Moody's downgrades to the district's general obligation and lease obligation debt affect $847 million of outstanding bonds.

With many residents eschewing flood insurance, the floods may, in the long term, hurt the tax base, an analyst said

Four deals were on the day-to-day calendar, "playing it close to the vest, and all of a sudden, boom, they all get done," said Pat Luby, head of municipal strategy at CreditSights.

The Kentucky State Property and Building Commission will be the issuer for the $885.5 million of bonds.

"It became clear our residence halls were a constraint and not an asset for our university," WKU president Timothy Caboni said.

Moody's cited the district's narrowing financial position as its available fund balance sank to 4.8% of revenue in fiscal 2025.

Campbellsville University "shares many of the characteristics of schools that are struggling" in higher education, said Lisa Washburn of Municipal Market Analytics.

State revenues were down 0.7% in the first six months of the fiscal year compared to a year earlier.

C. Christopher Trower was the lead attorney before the Supreme Court in a case that upheld states' rights to preferential tax treatment of their own bonds.

Moody's cited prospects for reduced operating deficits, generally stable enrollment and strong philanthropic support.

The ratings agency cited low days cash on hand and operating losses at the system, which operates one of the leading academic medical centers in Kentucky.

The state's government now expects general fund revenues to decline 2.3% in the current fiscal year from the previous fiscal year.

The state is expected to pursue a TIFIA loan instead of toll revenue bonds.

The deal is the second large bond issued from the Public Energy Authority of Kentucky this year.

Southeast state governments are among the most dependent on federal Medicaid, SNAP and FEMA funding.

Moody's based this downgrade on the lowering of the rating of the United States government.

The state hopes bonds and associated incentives will help to address a state-wide housing shortage.

A $150 million housing bonds with a taxable component is anticipated for May and $110 million higher education student loan bonds are also anticipated for that month.

The ratings agency cited weaker than expected financial performance in fiscal 2024 and a slow anticipated recovery in coming years.

Moody's cited heavy reliance on reserves, potential for continued operating deficts, and a fall 2024 decline in enrollment as factors in the downgrade.