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KBRA Assigns AA Rating to Triborough Bridge and Tunnel Authority General Revenue Bonds, Series 2025A, consisting of General Revenue Bonds, Subseries 2025A-1 and General Revenue Refunding Bonds, Subseries 2025A-2; Outlook is Stable

21 Jul 2025   |   New York

Contacts

KBRA assigns a long-term rating of AA to the Triborough Bridge and Tunnel Authority (TBTA) General Revenue Bonds, Series 2025A, consisting of General Revenue Bonds, Subseries 2025A-1 and General Revenue Refunding Bonds, Subseries 2025A-2.

Concurrently, KBRA affirms the long-term rating of AA on outstanding TBTA parity General Revenue Bonds, and affirms the AA- rating on outstanding TBTA Subordinate Revenue Bonds and Subordinate Revenue Bond Anticipation Notes.

The Outlook on all Bonds is Stable.

Key Credit Considerations

The ratings reflect 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.

Credit Challenges

  • Uncertainties persist regarding the legal status of the CBDTP and its impact of the 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 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: 1010467