Standard & Poor's Ratings Services said it raised its rating on Oklahoma Development Finance Authority's separate series 2004 industrial development taxable revenue bonds, issued for the Michelin North America Inc. and The Goodyear Tire & Rubber Co. Projects, to A-plus from A, with a stable outlook.
"The upgrade reflects a significantly improved revenue picture, strong debt service coverage throughout the Great Recession, and the limited likelihood of increased leveraging of the pledged revenues," said Standard & Poor's credit analyst John Sugden.
The rating reflects: a first-lien pledge of state corporate income taxes; the strong debt service coverage by pledged revenue streams; the projects' strong legislative support, demonstrated by specific enabling legislation; the short remaining maturity schedule; and the state's (AA-plus general obligation debt rating) stable economy.
The rating is constrained by: the weak bond provisions that exclude an additional bonds test and a nonimpairment clause, and the demonstrated volatility in corporate income tax revenues.
