August 25, 2016 -- Issue: Senior Lien Sales Tax Revenue Refunding Bonds, Series 2016B; Rating: Aa2; Rating Type: Underlying LT; Sale Amount: $221,000,000; Expected Sale Date: 09/14/2016; Rating Description: Special Tax: Sales;
Summary Rating Rationale
Moody's Investors Service has assigned a Aa2 rating to Dallas Area Rapid Transit's, TX (DART) $221 million Senior Lien Sales Tax Revenue Refunding Bonds, Series 2016B. The bonds are expected to sell on September 14.The Aa2 rating reflects sound legal provisions including the bonds' senior gross lien on a 1% sales tax collected in Dallas (Aa2 stable) and 12 other surrounding municipalities; trustee intercept of those revenues; a two times additional bonds test; the strength of the DART service area economy and our expectation that it will perform well going forward; and debt service coverage that is satisfactory but has declined in recent years reflecting DART's acceleration of its bonding program.
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