Fitch Ratings said it has upgraded to AA-minus from A the state of Florida Department of Environmental Protection's (DEP) $216.225 million Everglades Restoration revenue bonds and the $1.155 billion DEP Florida Forever revenue bonds.
Fitch assigned an AA-minus rating to the $46.495 million DEP Everglades Restoration revenue bonds, series 2015A, expected to sell competitively as soon as Aug. 24, on 18 hours' notice.
The rating outlook is stable.
The upgrade reflects state action to strengthen the legal provisions supporting the bonds. Implementing legislation related to voter approval of Amendment 1 to the state constitution increased the pledge to include all documentary tax collections and effectively raised the additional bonds test from 1.5x to 2.58x maximum annual debt service (MADS).
The upgrade also reflects robust debt service coverage by pledged revenues, due to recent strong growth in documentary stamp tax revenues, but also a result of the declining debt service schedule.
