Idaho received a MIG1 rating, the best quality short-term rating, from Moody's Investors Service, ahead of plans to price $500 million of tax anticipation notes on June 25.

The proceeds will fund temporary cash flow imbalances in the state's general fund during fiscal 2014, pending expected cash surpluses later in the fiscal year.

"The state has regularly and successfully issued short-term notes for cash flow purposes since 1986," according to the Moody's report.

Although the state, which has an Aa1 issuer rating from Moody's, issues very little long-term debt; the same is not true for short-term debt.

Idaho has done a $500 million TAN every June except 2008, when the state issued $600 million of notes, according to Moody's data.

The rating reflects a history of conservative cash flow projections for the general fund, very substantial alternative resources, and the strong underlying credit quality of the state of Idaho, according to the Moody's report.

The state has substantial balances in other state funds and accounts, projected at $2.8 billion, which shall be borrowed if necessary to repay notes, according to the Moody's report.

Moody's listed that and strong fourth-quarter revenue projections among the strengths that led to the high rating.

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