Are rating opinions required for project receiving TIFIA credit assistance?
Yes, the TIFIA statute requires each applicant to provide with its application a preliminary rating opinion letter from at least one Nationally Recognized Statistical Rating Organization, indicating that the project’s senior obligations have the potential to achieve an investment grade rating. If the TIFIA debt is intended to be the senior debt, it must receive an investment grade rating. Projects approved for TIFIA assistance must obtain an investment grade rating on their senior debt. The TIFIA debt cannot exceed the amount of the senior obligations unless the TIFIA assistance receives an investment grade rating. According to Title 23, “the term rating agency means a credit rating agency identified by the Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization.” The SEC currently identifies five such firms: Standard and Poor’s, Moody’s Investor Services, Fitch Ratings, Dominion Bond Rating Service Limited, and A. M. Best Company. Throughout the l
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