Press Release|CMBS, Public Finance
View PDF

KBRA Affirms A- Rating, Stable Outlook on MTA Hudson Rail Yards Trust Obligations

5 Sep 2025   |   New York

Contacts

KBRA affirms the long-term rating of A- for the Metropolitan Transportation Authority, NY Hudson Rail Yards Trust Obligations. The Outlook is Stable.

Key Credit Considerations

The rating was affirmed because of the following key credit considerations:

Credit Positives

  • High profile development project with substantial underlying property value resulting in low LTV ratios based on KBRA’s stress scenarios.
  • The Obligations’ flexible amortization schedule mitigates against the risk of potential delays in Project development.
  • The MTA’s obligation to replenish the Interest Reserve Fund helps offset potential delays in the exercise of cure rights and the disposition of property following a ground lease payment default.

Credit Challenges

  • The payment of ground rent is subject to tenant credit risk. Such risk is partially mitigated, however, as ground rent payments are made by Related-Oxford rather than by individual tenants.
  • The ultimate value of land and improvements in the development areas is subject to market volatility. Declines in the valuation of developed parcels could impact a tenant’s willingness to make ground rent payments.

Rating Sensitivities

For Upgrade

  • Completion of the WRY platform and accelerated progress in development of the WRY parcels.

For Downgrade

  • Significant delays in construction or failure to complete the WRY platform foundation and other developments on the WRY site.
  • Deterioration in regional or national property values, contributing to significant curtailment of development activity or a decline in the value of developments in the ERY/WRY.
  • Significant deterioration of the MTA’s credit quality.

To access ratings and relevant documents, click here.

Methodologies

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1011112