Press Release|Public Finance
KBRA Assigns AA Rating, Stable Outlook to Triborough Bridge and Tunnel Authority General Revenue Bonds, Series 2024A
7 Aug 2024 | New York
KBRA assigns a long-term rating of AA to the Triborough Bridge and Tunnel Authority (TBTA) General Revenue Bonds, Series 2024A, consisting of General Revenue Bonds, Subseries 2024A-1 and General Revenue Refunding Bonds, Subseries 2024A-2.
Concurrently, KBRA affirms the AA rating on outstanding TBTA General Revenue Bonds, and affirms the AA- rating on TBTA Subordinate Revenue Bonds.
The Outlook on all bonds is Stable
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 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 now indefinitely delayed 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 debt service reserve funding requirement.
Rating Sensitivities
For Upgrade
- Growth in traffic volume that, together with planned toll increases, results in a substantial and sustained increase in net revenues and debt service coverage.
For Downgrade
- Trend of significant decline in traffic volume, increase in operating expenses, and/or higher than forecast leverage that results in a prolonged decline in combined General Revenue and Subordinate Revenue debt service coverage.
To access rating and relevant documents, click here.