Standard & Poor's Ratings Services said it raised its long-term rating and underlying rating (SPUR) to A-plus from A on Utah Transit Authority's subordinate-lien sales tax revenue bonds outstanding and removed the ratings from CreditWatch with positive implications.
The outlook is stable.
"The rating actions are based on our view of the issuance of the 2015A subordinate-lien bonds, which improved the additional bonds test on the outstanding bonds to 1.2x from 1.1x," said Standard & Poor's credit analyst Jen Hansen.
At the same time, Standard & Poor's affirmed its A-plus rating on the authority's 2015A subordinate-lien bonds. The outlook is stable.
The stable outlook on the subordinate-lien bonds reflects the expectation of continued good maximum annual debt service coverage within the next two years, based on the rise in pledged revenue in 2013 and the absence of the authority's additional new-money bonding plans in the short term.
The agency does not expect to take a positive rating action during the two-year outlook horizon.
The only adequate 1.20x subordinate-lien additional bonds test (ABT) could remain a limiting rating factor even if debt service coverage improves, despite the authority's lack of immediate plans to issue new debt.
