OREANDA-NEWS. S&P Global Ratings assigned its 'AAA' long-term rating to the Texas Transportation Commission's approximately $600 million general obligation (GO) highway improvement bonds, series 2016A. The bonds are secured by the state's full faith and credit. At the same time, S&P Global Ratings affirmed its 'AAA' issuer credit rating on the State of Texas and its 'AAA' long term rating on the state's previously issued GO bonds. The outlook is stable.

Proceeds from the series 2016A bonds will be used to pay for or reimburse the state highway fund (SHF) for payment of all or a portion of the costs of highway improvement projects.

"The 'AAA' GO rating reflects our view of the state's diverse economy, strong revenue forecasting and cash management practices, low overall net debt, rising unfunded pension liabilities, and potential long-term budgetary pressures," said S&P Global Ratings credit analyst Nora Wittstruck.

The stable outlook reflects S&P Global Ratings' expectation that Texas' economic performance will continue to support the revenue forecasts and outperform the nation.