Kroll Bond Rating Agency (KBRA) has assigned a AA- rating to the Sales Tax Securitization Corporation's third lien sales tax securitization bonds. The outlook on the rating is stable, according to the agency's announcement.
The Sales Tax Securitization Corporation is an entity that securitizes sales tax revenues, often used by municipalities to fund infrastructure or other public projects. The third lien designation indicates that these bonds are subordinate to first and second lien obligations, which may affect their credit quality.
KBRA's AA- rating reflects a high degree of creditworthiness, though not the highest possible. The stable outlook suggests that KBRA does not expect the rating to change in the near term.
Further details about the bond issuance, including the amount and specific purpose, were not available in the initial announcement. Investors should refer to the official rating report for comprehensive information.
