Press Release|Public Finance

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:

Credit Positives

  • 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.

Credit Challenges

  • 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.

Rating Sensitivities

For upgrade

  • Growth in traffic volumes that increases TBTA net revenues and results in a substantial and sustained increase in debt service coverage.

For downgrade

  • 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.


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