Analyses of GARVEE Bonding Capacity 2008
Attachment B
Detailed Assumptions for Sensitivity Analysis
Summary of Assumptions for GARVEE Bonding Capacity Sensitivity Analyses
Base Case - Current Market Conditions
| Factors | Assumptions | Comments |
|---|---|---|
| Final Maturity | 6 and 12 years | Analyses run at each final maturity listed at left. |
| Interest Rates | 3.58% and 4.13% | Rates indicated relate to each respective final maturity above; listed rates represent the weighted average coupon for a bond issue sizing with level annual debt service. |
| Annual Revenues | $2,441,441,327.82 |
The Treasurer may not authorize the issuance of the bonds if the annual debt service on all outstanding GARVEE obligations would exceed 15 percent of the State’s historical annual deposits in the State Highway Account from federal funding. |
Market Sensitivity Case - Alternative Market Conditions
| Factors | Assumptions | Comments |
|---|---|---|
| Final Maturity | 6 and 12 years | Analyses run at each final maturity listed at left. |
| Interest Rates | 4.58% and 5.13% | Rates indicated relate to each respective final maturity above; listed rates represent the weighted average coupon for a bond issue sizing with level annual debt service. |
| Annual Revenues | $2,441,441,327.82 |
The Treasurer may not authorize the issuance of the bonds if the annual debt service on all outstanding GARVEE obligations would exceed 15 percent of the State’s historical annual deposits in the State Highway Account from federal funding. |