KBRA Releases Research – Coronavirus (COVID-19): Gasoline Consumption Plummets but Many Transportation Bonds Remain Strong

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) releases a research report discussing state transportation revenue bonds, which many states issue to fund transportation needs, secured by either tolls or some mix of transportation related revenues, such as motor fuel taxes and vehicle registration fees.

In this report, KBRA examines the latter category and notes that while legal covenants and revenue pledges can vary greatly, some state transportation revenue bonds have exceptionally noteworthy credit strengths. While the economic contraction resulting from the coronavirus (COVID-19) pandemic is reducing motor fuel consumption and depressing fuel prices, KBRA believes that some transportation tax bonds have attributes that confer greater credit stability.

Click here to view the report.

About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe Limited is located at 6-8 College Green, Dublin 2, Ireland.

Contacts

Analytical:
Patricia McGuigan, Senior Director

+1 (646) 731-3350

pmcguigan@kbra.com

Peter Scherer, Associate

+1 (646) 731-2325

pscherer@kbra.com

Karen Daly, Senior Managing Director

+1 (646) 731-2347

kdaly@kbra.com

Business Development:
Bill Baneky, Managing Director

+1 (646) 731-2409

bbaneky@kbra.com

James Kissane, Senior Director

+1 (213) 806-0026

jkissane@kbra.com

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