The obligation of the treasury under the SBPA is a limited obligation of the state of
KEY RATING DRIVERS
LONG-TERM CREDIT QUALITY: The long-term rating on the documentary stamp tax backed bonds is 'A' with a Stable Outlook, reflecting adequate debt service coverage by an economically sensitive revenue stream derived from real estate and other transactions.
AMPLE LIQUIDITY: The short-term rating is based on the liquidity support provided by the
LIMITED TERMINATION RISK: There are limited instances in which the state may terminate its obligation to provide liquidity. The standby requires downgrade by two rating agencies to 'BBB' or lower before termination of the liquidity facility with a mandatory tender and below investment grade for a termination without mandatory tender.
Liquidity for bonds in variable rate mode that are tendered but not remarketed is provided by the
The treasurer is responsible for investing all general revenue, trust, and agency funds of the state, excluding the state pension funds, which are invested by the
LIMITED LIKELIHOOD OF TERMINATION
The 'F1+' short-term rating reflects both the ability of the state treasurer to provide timely payment of the purchase price upon optional or mandatory tender in the event of a failed remarketing of the bonds and the likelihood that the liquidity facility will terminate without a mandatory tender due to deterioration of the bonds' long-term credit, as is expressed in the long-term rating. The short-term rating takes into account both the strength of the liquidity provider as well as the underlying credit quality of the bonds. With an 'A' long-term rating on bonds, Fitch's criteria indicate a short-term rating of 'F1'; however, in this case the rating of 'F1+' reflects a number of factors, including the minimal likelihood that the long-term rating will fall below investment grade and cause a termination without mandatory tender, and the state's history of making legislative and programmatic change to support its ratings.
BONDS PAID FROM DOCUMENTARY STAMP REVENUES
Everglades Restoration revenue bonds, which since 2006 have had a parity lien on the documentary stamp tax revenues, fund the acquisition and improvement of land and water areas, including water supply and flood protection, under a
For additional information see 'Fitch Rates $189MM Florida Environmental Protection Revs 'A'; Outlook Stable', dated
Additional information is available at 'www.fitchratings.com'.
--'Tax-Supported Rating Criteria', dated
--'U.S. State Government Tax-Supported Rating Criteria', dated
--'Rating U.S. Public Finance Short-Term Debt', dated
Tax-Supported Rating Criteria
U.S. State Government Tax-Supported Rating Criteria
Rating U.S. Public Finance Short-Term Debt
Source: Fitch Ratings
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