Washington Metropolitan Area Transit Authority, D.C. – Dedicated Capital Funding Revenues Surveillance Report

Rating Summary

The long-term ratings remain anchored by the strong credit fundamentals of the District of Columbia, the State of Maryland, and the Commonwealth of Virginia (the “Signatories”) which, pursuant to their respective Dedicated Capital Fund statutes, Dedicated Funding Grant Agreements (the “Agreements”), and the Washington Metropolitan Area Transit Authority (“WMATA” or “Metro”) Compact, provide WMATA with a dedicated source of annual revenue for safety and state of good repair capital projects. Counterbalancing these strengths is the annual appropriation nature of the pledged Dedicated Capital Funding Revenues backing timely debt repayment. KBRA makes a rating distinction between the Dedicated Revenue Bonds and the Second Lien Dedicated Revenue Bonds (the active lien) to reflect the subordinate payment priority of the Second Lien Bonds.

The long-standing commitment to WMATA from the District of Columbia, Maryland, and Virginia dating back to its original establishment,…