The Metropolitan Transit Authority (MTA), New York’s $967.1 million Railroad Rehabilitation Infrastructure Financing (RRIF) Loan Series 2015X, has earned an ‘A’ rating from Fitch Ratings.
MTA’s outstanding transportation revenue bonds necessitated the RRIF loan. The rating is on about $20.7 billion and is based on a gross lien on a stream of varied pledged revenues on which the bonds are secured, the importance of the MTA’s transit network to the economy of New York, and MTA history of providing solutions for its own operating and capital needs.
The MTA transportation network carries about 8.05 million passengers each day on its subways and buses, as well as 576,000 commuter rail passengers. Although it is an independent entity, MTA has received much backing from the state of New York.
Loans are necessary for the MTA to keep up with capital needs. The authority’s 2015-19 capital program of $29 billion was vetoed by the Capital Programs Review Board, which means the proposed Transit and Commuter Capital Program assumes around $3.9 billion in MTA-related debt. That plan has a shortfall of about $15.2 billion, which is anticipated to be covered through additional federal, state and local resources or potentially additional MTA debt.
The proposed Triborough Bridge and Tunnel Authority (TBTA) Capital Program (not subject to CPRB approval) is estimated to be $3.1 billion with approximately $2.3 billion funded from TBTA bonds.
