Fitch Ratings downgraded the rating of Maine Municipal Bond Bank’s transportation infrastructure revenue bonds, TransCap program, to AA-minus from AA.
The downgrade affects $209 million in debt. The outlook is now stable.
The bonds are payable from state motor vehicle fees and excise taxes, including gasoline taxes.
“The downgrade reflects the state’s sluggish economic performance in the recovery, weak demographic trends, and a statutory changes in the fuel taxes that makes collections more sensitive to shifts in fuel consumption,” according to Fitch Ratings.
On the other hand, pledged revenues provide satisfactory debt service coverage, Fitch said. The state constitution also specifies that some of the state’s highway revenues, including motor vehicle fees and fuel taxes, are allocated to paying the bonds.