Policy No..: MDTA 7009 Effective: August 16, 2005
evidences of indebtedness issued under the provisions of Title 4 of the Transportation Article, consistent with this policy and other Department guidelines. i. For issues secured by toll revenues, MDTA will request ratings prior to the sale of securities from at least two of the three major rating agencies for municipal bond issues: Moody’s Investors Service, S&P Global, and Fitch Ratings. ii. For non-recourse financing issues, the decision to request underlying credit ratings will be on a case by case basis as determined by the Executive Director, CFO, the municipal advisors, the obligor and the underwriter for the bonds in the case of a negotiated sale. iii. The MDTA may provide written and/or oral presentations to the rating agencies to assist the agency credit analysts. b. Policy Statement 34. MDTA shall consider the use of credit enhancements such as debt service reserves, bond insurance, letters of credit, and surety bonds when such credit enhancement proves cost- effective. i. The net debt service on the bonds should be reduced by more than the net carrying costs of the enhancement. A credit enhancement should result in lower net financing costs and may result in higher credit ratings. c. Policy Statement 35 . The Executive Director, CFO and the municipal advisors are responsible for maintaining relationships with the rating agencies. This effort includes providing periodic updates on MDTA’s general financial condition along with meetings and presentations in conjunction with a new debt issuance. X. Annual Review a. Policy Statement 36. This Debt Policy is to be reviewed by the MDTA Finance Committee at least annually. XI. Definitions a. None XII. Authorized/Supporting Documents XIII.Policy History
a. Approved 8.16. 2005 b. Reviewed 8.10. 2006 c. Amended 8.9.2007 as of 9.20.2007
d. Amended 9.11.2008 e. Amended 8.25.2009 f. Amended 11.24.2010 g. Reviewed 9.22.2011
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