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KBRA Assigns AA Rating, Stable Outlook to the Metropolitan Transportation Authority, NY Transportation Revenue Refunding Green Bonds, Series 2026A (Climate Bond Certified)

2 Oct 2026   |   New York

Contacts

KBRA assigns a long-term rating of AA to the Metropolitan Transportation Authority, NY Transportation Revenue Refunding Green Bonds, Series 2026A (Climate Bond Certified). Concurrently, the long-term rating of AA is affirmed on outstanding Transportation Revenue Bonds. The Outlook is Stable.

Key Credit Considerations

The rating actions reflect the following key credit considerations:

Credit Positives

  • The gross revenue pledge supports strong coverage of annual debt service. Sound liquidity and reserves provide adequate operating flexibility.
  • MTA’s transportation assets serve over 15 million people and are essential to the economic well-being of the City and surrounding metropolitan area.

Credit Challenges

  • Aging infrastructure, climate change resilience, and evolving ridership patterns are among the long-term challenges requiring extensive capital investment.
  • Growth in non-discretionary expenditures can worsen already sizeable gaps even in a period of favorable revenue performance and continued efficiencies.
  • An exceptionally high fixed cost burden including contractually required labor-related obligations and debt service remains an impediment to ongoing, structurally balanced operations.

Rating Sensitivities

For Upgrade

  • Delivery of critical Capital Program elements, including state-of-good-repair projects, with maintenance of strong debt service coverage from pledged Transportation Revenues.

For Downgrade

  • A lack of progress in addressing structural operating imbalances driven chiefly by labor, health/OPEB, liability/claims, workers’ compensation, energy and Paratransit costs.
  • Material erosion of pledged revenue coverage stemming from sustained operating pressures, a significant increase in leverage and/or a reduction in resources that otherwise support the TRB credit.

To access ratings and relevant documents, click here.

Methodology

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1017377