New Gas Tax Backed Bonds Will Fund Continuing and New Projects
JAMESTOWN, R.I.– The Rhode Island Turnpike and Bridge Authority (RITBA)
has received notification by Standard and Poor’s Ratings Services LLC (S&P)
that the rating agency has assigned its 2016A motor fuel tax bonds an ‘A+’
rating. The new bonds will be released for sale in February 2016.
“We are happy to receive this ‘A+’ rating from S&P and a positive outlook as we
move forward to releasing these bonds to the financial markets,” said Earl
“Buddy” Croft, Executive Director of RITBA. “We are confident RITBA’s bridges
will be structurally sound for years to come.”
S&P cited the statutorily pledged revenues of the 3.5 cents per gallon of the
statewide motor fuel tax, subject to annual appropriation by the state’s General
Assembly, that secure the motor fuel tax bonds as reason for the ‘A+’ rating.
The new RITBA bonds are being issued to finance the renovation, renewal
repair, rehabilitation, retrofitting, upgrading, and improvement of the Pelt Bridge,
Mount Hope Bridge, and the Sakonnet Bridge, among other projects. A portion of
bond proceeds will also be used to satisfy debt service requirements and to
refinance bond anticipation notes issued in 2014 and 2015.
As a credit rating agency, S&P issues credit ratings for the debt of public and
private corporations. S&P has been designated a nationally recognized
statistical rating organization by the U.S. Securities and Exchange Commission.