MDOT has authority to issue bonds for a variety of transportation programs. Bond financing allows the department to advance projects so users can enjoy the social and economic benefits sooner. Bonding for improvements with a significant useful life spreads the project costs to the users over a longer period of time.

Economic Benefits

Bond financing allows the department to advance projects and complete them more quickly than with cash financing only. Economic benefits of a project are realized sooner, creating a stimulus to the state's economy. The current bond program takes advantage of historically low interest rates which offsets the inflation cost of delaying projects to future years. When conditions arise, refinancing existing debt with lower interest rates increases the funding available to carry out the department's other priorities.

Fitch affirmed the AA rating on the STF series 2004 bonds in March of 2019.

Fitch affirmed the AA rating on the CTF series 2009 bonds in March of 2019. S&P affirmed ratings during Oct. 2018.

S&P affirmed July 2016 ratings during Sept. 2017.