Weekly Market Update

SENATE UNVEILS TAX REFORM BILL

Thursday, November 9, 2017

Noting key differences from the House bill released last week, Senate Republicans announced their tax plan on Thursday. The Senate bill will include seven individual tax brackets as opposed to the House's four. It would also eliminate the state and local tax deduction, a provision that some Republican members in the House will not endorse. Like the House bill, the Senate's plan includes lowering the corporate tax rate to 20%; however, in the Senate's proposal, the corporate tax rate would not drop to 20% until 2019. The Senate is hesitant to lower the corporate tax rate immediately, as rules of that chamber stipulate that it cannot pass a tax bill that will increase the deficit by more than $1.5 trillion over the next decade. The Senate has yet to provide commentary on whether private activity bonds (PABs) will maintain their tax-exempt status.

In Other News

Rating Agency Update

  • Moody's affirmed its Baa2 rating on Emmanuel College. The outlook is negative.
  • Moody's assigned Aa3 to Georgia Tech Cobb Research Campus LLC's Series 2017A & 2017B Revenue Bonds. The outlook is positive.
  • S&P assigned AA- to Georgia Tech Cobb Research Campus LLC's Series 2017A & 2017B Bonds. The outlook is stable.
  • Moody's assigned A3 to The Catholic University of America's Series 2017B Revenue Bonds. The outlook is stable.
  • S&P assigned A to The Catholic University of America's Series 2017B Revenue Bonds. The outlook is stable.
  • Moody's assigned Baa3 to Bellarmine University's Series 2017A & 2017B Revenue Refunding Bonds. The outlook is stable.
  • Moody's assigned A2 to Kean University's Series 2017 Revenue Refunding Bonds. The outlook is stable.
  • S&P assigned A- to Kean University's Series 2017C & 2017D Bonds. The outlook is stable.
  • Moody's assigned Aa3 to University System of New Hampshire's Series 2017A & Series 2017B Revenue Bonds. The outlook is stable.
  • Moody's assigned A1 to Grand Valley State University's Series 2017 Revenue Bonds. The outlook is stable.
  • S&P assigned A+ to Grand Valley State University's Series 2017 Revenue Bonds. The outlook is revised to positive from stable.
  • Moody's assigned Aa3 to University of North Carolina at Greensboro's Series 2017 Revenue Refunding Bonds. The outlook is stable.
  • S&P assigned A+ to University of North Carolina at Greensboro's Series 2017 Revenue Bonds. The outlook is stable.
  • S&P affirmed its AA- rating on Lehigh University. The outlook is stable.
  • S&P assigned AAA to Rice University's Series 2017 Bonds. The outlook is stable.
  • S&P affirmed its BBB+ rating on Hendrix College. The outlook is stable.
  • S&P assigned BBB- to La Salle University's Series 2017 Bonds. The outlook is stable.
  • S&P affirmed its AA- rating on Boston College. The outlook is stable.