MOODY'S ASSIGNS A1 RATING TO $857.8 MILLION OF NEW JERSEY TRANSPORTATION TRUST FUND AUTHORITY TRANSPORTATION SYSTEM BONDS 2010 SERIES A AND B

Posted on: December 23, 2009, 1:56 pm

NEW YORK, Dec 23, 2009 -- Moody's Investors Service has assigned an A1 long-term rating to the New Jersey Transportation Trust Fund Authority's $857.8 million of Transportation System Bonds, 2010 Series A and B. The Series A bonds are expected to be issued as capital appreciation bonds. The Series B bonds are expected to be designated as qualified Build America Bonds entitling the authority to receive, from the U.S. Treasury, semi-annual payments equivalent to 35% of the semi-annual interest payable. The expected U.S. Treasury payments are not pledged to the repayment of the bonds. The bonds are special obligations of the authority, payable from anticipated contract payments to be made by the State of New Jersey from its general fund. Such payments are subject to annual appropriation by the state legislature, but are also supported by specific state revenues, which are all dedicated to the state's transportation capital program, in some cases by statute, and in others by the constitution. The outlook for the A1 rating is negative...

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