KBRA Releases Surveillance Report for MTA Hudson Rail Yard Trust Obligations

On September 7, 2023, KBRA affirmed the long-term rating of A- for the Metropolitan Transportation Authority, NY (MTA) - Hudson Rail Yards Trust Obligations. The Outlook is Stable. The rating reflects the risks associated with the scale and complexity of the remaining construction and development projects as well as the Hudson Rail Yards Project’s (“the Project’s”) sensitivity to changes in the real estate markets. These risks are somewhat mitigated by the MTA's Interest Reserve Fund replenishment requirements, and by a flexible amortization schedule that allows a combination of ground rent payments, the Interest Reserve Fund, and/or proceeds from purchase options to be sufficient to pay interest and amortize principal under various development scenarios and timelines. The rating also reflects the seniority of ground rent payments relative to any mortgage obligations associated with ground tenants’ development investments.

To access rating and relevant documents, click here.

Click here to view the report.