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Fitch Ratings assigns 'A+' rating to Pennsylvania Commonwealth Financing Authority's revenue bonds.

New York: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, assigned an 'A+' rating to the Pennsylvania Commonwealth Financing Authority's (CFA) $412,655,000 revenue bonds (Federally Taxable), Series A of 2018 (PlanCon Program).

The bonds are expected to sell on or about the week of January 8 through negotiated sale. Additionally, Fitch has withdrawn the 'A+' rating on the CFA's unsold (PlanCon Program) revenue bonds (Federally Taxable), Series A of 2017. Appropriations for CFA debt service payments are subject to legislative discretion, despite the continuing deposit of Article II revenues (mainly sales tax) for the benefit of CFA, resulting in a rating one-notch below Pennsylvania's 'AA-' Issuer Default Rating (IDR). The legislature retains the ability to alter or repeal the continuing appropriation statute.

The revenue bonds are limited obligations of the authority secured by service fees paid by various commonwealth agencies to the authority and assigned to the trustee. Act 85 of 2016 established a continuing appropriation of Article II revenues from Pennsylvania's general fund to a restricted account to be used for debt service. The continuing appropriation does not require annual renewal but can be amended or repealed by the legislature.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Mar 22, 2018
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