On August 25, 2009, the state issued Tax and Revenue Anticipation Notes (TRAN) worth $5.5 billion. These bonds received impressive ratings by the country’s three largest rating agencies. While Standard & Poor’s Ratings Services rated the bonds SP-1+, those that were issued by Moody’s Investors Service got rated as MIG 1. Meanwhile, Fitch Ratings assigned the F1+ rating to these bonds. The ratings reflected highest possible credit rating scores that could be assigned by these rating agencies.
The state of Texas had planned to utilize most of the proceeds from these bonds in school funding as districts prepare for the start of the school year.
Some of the Texas bonds and their profile are:
Austin Community College District bonds: Standard & Poor's Ratings Services raised its long-term and underlying rating (SPUR) on the outstanding bonds issued by ACC District, Texas from ‘A' to ‘AA-‘ on October 22, 2009. The upgrade is due to the district’s overall healthy financial operations on a full accrual basis.
Revenue Financing System (RFS) bonds, series 2009B: Issued in January 2009 by the University of Texas System, there are approximately $100,000,000 bonds, which offer a fixed rate. Proceeds from the sales of these would be applied by the RFS to pay the purchase price of outstanding RFS debt. These bonds were assigned the 'AAA' rating by Fitch Ratings in January 2009.
The rating reflected the university’s strengths such as its:
experienced management team
diversified revenue streams