Press Release|Public Finance

KBRA Assigns AA Rating to Washington Metropolitan Area Transit Authority (DC) Second Lien Dedicated Revenue Bonds, Series 2023A; Affirms AA+ Rating for Senior Lien Bonds; Outlook is Stable

7 Jul 2023   |   New York


KBRA assigns a long-term rating of AA to the Washington Metropolitan Area Transit Authority Second Lien Dedicated Revenue Bonds, Series 2023A (Sustainability Bonds – Climate Bond Certified). KBRA additionally affirms the long-term rating of AA+ for the Authority's senior lien Dedicated Revenue Bonds outstanding. The rating Outlook is Stable.

Key Credit Considerations

The rating actions reflect the following key credit considerations:

Credit Positives

  • The signatory jurisdictions have an uninterrupted 47-year history of payment of their annual commitments.
  • Strong credit characteristics of signatory jurisdictions supports appropriation funding mechanism.
  • Essentiality of mass transit to metropolitan Washington D.C. area and established history of operating and capital support by these jurisdictions.
  • Substantial coverage of debt service requirements.

Credit Challenges

  • Dedicated revenue sources may be adversely affected by economic cycles and exogenous events.
  • Signatories are allowed to proportionally reduce their dedicated capital funding contribution if another does not pay the full amount of their obligations.

Rating Sensitivities

For Upgrade

  • Improved credit position of signatory jurisdictions.

For Downgrade

  • Weakened credit position of one or more of the signatories.
  • Failure of one or more signatories to make its committed appropriation in full.

To access rating and relevant documents, click here.


805 Third Avenue
29th Floor
New York, NY 10022
+1 (212) 702-0707
Contact Us

© 2010-2023 Kroll Bond Rating Agency, LLC. All Rights Reserved. Kroll Bond Rating Agency, LLC is not affiliated with Kroll Inc., Kroll Associates Inc., KrollOnTrack Inc., or their affiliated businesses.