PHOENIX - The Oregon State Department of Transportation is preparing to sell $134 million of revenue-backed refunding bonds.
The bonds, which are expected to price Aug. 21, are rated Aa1 by Moody's Investors Service, AAA by S&P Global Ratings, and AA-plus by Fitch Ratings. The bonds are secured by the net revenues of the department, and represent a significant refunding issuance at a time when refunding activity has begun to slacken off with rising interest rates and a falling number of refunding opportunities.
Moody’s labeled the bonds outlook as stable, citing the expectation that the government will continue to provide revenues as needed to support debt payments.
“The outlook reflects the expectation that steady pledged revenue growth will continue, supporting solid debt service coverage,” Moody’s said.” The stable outlook also reflects the expectation that future bond authorizations will include new revenues and sustain stable coverage.”
The Oregon DOT administers and oversees the state's highway, public transit, rail, and traffic safety programs, and implements motor vehicle and motor carrier laws throughout the state.
Oregon was among a number of states that endured a contentious budget balance in recent months, a risk factor that Moody’s said could cause a future downgrade if legislative actions were to reduce revenues.
Oregon issued a some $335 million of similar bonds in May.