August 12, 2024

BOISE - Moody’s Ratings (Moody’s) has upgraded to AAA from AA1 the following obligations of the State of Idaho backed by a pledge of state sales taxes: the Idaho School Bond Sales Tax Guaranty Program; outstanding bonds issued by the Idaho Bond Bank Authority (IBBA); and outstanding Transportation Expansion and Congestion Mitigation (TECM) Fund bonds issued by the Idaho Housing & Finance Association (IHFA). Moody’s has also upgraded to Aa3 from A2 the outstanding federal highway trust grant and revenue anticipation (GARVEE) bonds issued by the IHFA. The outlook on the ratings is stable.

“This is great news for Idaho taxpayers,” said State Treasurer Julie Ellsworth. “These upgrades will further decrease the borrowing costs for the various entities that participate in the Idaho School Bond Sales Tax Guaranty Program and the Idaho Bond Bank Authority, and the tax base they represent.

The upgrades were due in part to the new US States and Territories methodology implemented by Moody’s. The upgrades to the Idaho School Bond Sales Tax Guaranty Program, IBBA, and TECM were also due to Idaho’s general economic strengths and the strong performance in state sales taxes pledged to the obligations while the GARVEE upgrade reflects an expectation that debt service coverage by pledged federal highway aid grant revenues will remain strong.

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