LOS ANGELES -- Moody's Investors Service assigned a MIG 1 to $475 million in tax anticipation notes that Idaho plans to price June 24.
The rating is Moody's highest short-term rating.
The tax and/or revenue anticipation notes are secured by tax revenue from the state's general fund that will come in during the fourth quarter of fiscal 2015; and the state's full faith and credit general obligation pledge.
In addition, the state treasurer has covenanted to access alternate cash resources in other state funds if necessary to repay the notes, according to Moody's June 16 report.
The notes will mature on June 30, 2015.
The proceeds will be used to fund temporary cash flow imbalances in the state's general fund during fiscal 2015.
Idaho has regularly and successfully issued short-term notes for cash flow purposes since 1986, Moody's analysts said.
"The best-quality short-term note rating reflects a history of conservative cash flow projections for the general fund, very substantial alternate available resources, and the strong underlying credit quality of the state of Idaho, which holds an Aa1 issuer rating," Moody's analysts said. "In addition, the state has a history of effective and active cash management."
Strengths include the general fund revenue pledge and requirement to use borrowable funds if necessary to repay notes, providing more-than-sufficient available resources. Analysts also cited substantial balances in other state funds and accounts, projected at $3.1 billion, a history of strong financial management, and early funding of the note repayment account.
