MOODY'S ASSIGNS Aa2 RATING AND NEGATIVE OUTLOOK TO THE KENTUCKY STATE PROPERTY AND BUILDINGS COMMISSION'S $153 MILLION REVENUE AND REVENUE REFUNDING BONDS

Posted on: June 23, 2010, 11:57 am

NEW YORK, Jun 23, 2010 -- Moody's Investors Service has assigned a Aa2 rating to the Kentucky State Property and Buildings Commission's Revenue and Revenue Refunding Bonds, Project No.98. The rating outlook is negative. The ratings reflect the credit quality of the Commonwealth of Kentucky (issuer rating of Aa1 with a negative outlook), the commonwealth's significant reliance on such appropriation-backed financings to fund capital investments, and the limited subject-to-appropriation nature of the payment obligations supporting the bonds. The bonds are being issued primarily to refund previously issued debt for near-term budget relief, but will also finance technology upgrades to the commonwealth's human resources information systems (about $23 million). Concurrently, Moody's has affirmed the commonwealth's Issuer Rating of Aa1 and the Aa2 and Aa3 ratings assigned to various of the commonwealth's outstanding general fund and agency fund appropriation backed debt, amounting to about $6 billion. In addition, the Aa2 programmatic ratings on the Kentucky Public University Intercept Program and the Kentucky School District Enhancement Program have been affirmed...

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