KBRA Assigns AA Rating to Triborough Bridge and Tunnel Authority General Revenue Bonds, Series 2023B; Outlook is Stable
1 Aug 2023 | New York
KBRA assigns a long-term rating of AA to the Triborough Bridge and Tunnel Authority (TBTA) General Revenue Bonds Series 2023B, consisting of General Revenue Bonds Subseries 2023B-1 and General Revenue Refunding Bonds, Subseries 2023B-2. The Outlook is Stable.
Concurrently, KBRA affirms the long-term rating of AA on the TBTA’s outstanding General Revenue Bonds and the long-term rating of AA- on the Subordinate General Revenue Bonds. The Outlook on the outstanding bonds is Stable.
A report will follow.
Key Credit Considerations
The rating was assigned because of the following key credit considerations:
- The TBTA Board has independent rate-setting authority and a proven track record of implementing required rate increases. Toll rates are established to generate operating surpluses used to subsidize the MTA’s mass transit system.
- TBTA bridges and tunnels are highly essential to the regional transportation network, providing vital transportation links that support economic activity across the nation’s most heavily populated service area.
- Historical demand has been generally unaffected by biennial toll increases. Vehicular traffic has fully recovered from pandemic impacts.
- Uncertainties persist regarding the impact of the planned Central Business District Tolling Program on traffic volume and toll revenues at TBTA facilities that connect motorists to the Central Business District.
- Traffic demand, while historically inelastic, may be impacted by further toll rate increases.
- There is no requirement for funding debt service reserve funds.
- Growth in traffic volumes that increases TBTA net revenues and results in a substantial and sustained increase in debt service coverage.
- Significant declines in traffic volume, increases in operating expenses, and/or higher than forecast leverage that result in a prolonged decline in combined General Revenue and Subordinate Revenue debt service coverage.
To access rating and relevant documents, click here.