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10/14/2020
Standard & Poor’s Global Ratings (S&P) earlier this week issued Sonoma-Marin Area Rail Transit (SMART) in California an AA rating on the proposed refinancing of the agency’s construction debt.
S&P Global Ratings assigned the AA rating on SMART’s anticipated $123.4 million Measure Q sales tax revenue refunding bonds, which will be sold as green bonds.
An AA rating indicates that the agency’s “capacity to meet its financial commitment on the obligation is very strong,” SMART officials said in a press release.
“This successful step will put SMART closer to its goal of reducing debt service by as much as $3 million annually” said SMART Chair Eric Lucan.
S&P also affirmed its AA bond rating on its existing bonds following a review of SMART’s creditworthiness.
Receiving a ratings review is one step SMART has taken in the past few months to pursue a refinancing of its debt and take advantage of historically low rates, officials said.
“These savings will provide greater fiscal stability for SMART and allow the agency to stabilize its operating costs despite the historic impacts of the pandemic,” said Barbara Pahre, SMART’s vice chair.