KBRA Assigns A+ Rating, Stable Outlook, to Colorado Statewide Bridge and Tunnel Enterprise Senior Infrastructure Revenue Bonds, Series 2025A

KBRA has assigned a long-term rating of A+, with a Stable Outlook, to Colorado Statewide Bridge and Tunnel Enterprise Senior Infrastructure Revenue Bonds, Series 2025A.

Key Credit Considerations

The rating was assigned because of the following key credit considerations:

Credit Positives

• Continued population growth is expected in the State, which will likely track growth in motor vehicle registrations, and the related Bridge Surcharge fees.
• BTE covenants to not reduce Bridge Surcharges while the Bonds are outstanding.
• Pledged BTE Bridge Surcharge receipts have been generally steady.

Credit Challenges

• Bridge Surcharges have been imposed at the maximum allowable level.
• Lack of a debt service reserve fund, in conjunction with the Bonds being primarily secured by a third lien position on the revenue stream.

Rating Sensitivities

For Upgrade

• Improved debt service coverage, whether due to additional pledged revenues or increased vehicle registrations in the State of Colorado.

For Downgrade

• BTE has determined that it is currently classified as an enterprise, therefore TABOR limitations do not apply. However, the enterprise status must be determined on an annual basis which requires ongoing monitoring. If disqualified as an enterprise, BTE could face spending and revenue limitations and require voter approval for the issuance of debt.

To access ratings and relevant documents, click here.

Methodologies

• Public Finance: U.S. Special Tax Revenue Bond Rating Methodology
• ESG Global Rating Methodology

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1008713

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