The Metropolitan Transportation Authority (MTA) said this week that bonds issued through its Transportation Revenue Bond (TRB) credit were rated AA+ by the Kroll Bond Rating Agency.
AA+ is one of the highest ratings the agency gives for debt creditworthiness, indicating that MTA bonds carry a minimal risk of loss from credit-related events.
“MTA provides a critical transportation network for over 15 million people in the greater New York metropolitan area, which is essential to the economic and social fabric of the area,” Kroll said. “MTA has a well-defined governance and management structure, which includes specific policies governing the budget process, multi-year financial and capital planning, and debt management. MTA management has a strong track record of balancing its operating budget over changing economic cycles and unforeseen events, as well as managing complex capital programs designed to improve and expand the system.”
“Much of the public discourse surrounding the MTA finances focuses on the total volume of debt outstanding, but Kroll’s rating is based on a deeper look into the soundness of the MTA’s underlying financial fundamentals, both now and in the foreseeable future,” Robert Foran, MTA’s chief financial officer, said. “The sterling rating is recognition of the bottom-line fact that the MTA has, and can be expected to have, the resources available to repay its bondholders while continuing to operate its $1 trillion network of trains, buses, bridges and tunnels in service of the New York region.”
