MTA Credit Rating Upgrade: Impact on NY Metro Rail Infrastructure

Introduction

The Metropolitan Transportation Authority (MTA) has seen its transportation revenue bonds rating upgraded from “A-” to “A” with a “stable” outlook by Standard & Poor’s Global Ratings. This positive assessment is attributed, in part, to the initial achievements of the MTA’s congestion relief tolling program and a rise in fare-box revenue, driven by increased ridership and a decrease in fare evasion.

Credit Rating Improvement

Standard & Poor’s Global Ratings has upgraded the Metropolitan Transportation Authority’s (MTA) transportation revenue bonds rating. The rating has moved from “A-” to “A,” accompanied by a “stable” outlook. This upgrade signifies improved financial standing and confidence in the MTA’s operational performance.

Factors Contributing to the Upgrade

MTA officials have indicated that the credit rating improvement is linked to several key factors. The preliminary success of the authority’s congestion relief tolling program is a significant contributor. Additionally, an increase in fare-box revenue has played a crucial role, stemming from both growth in ridership and a reduction in fare evasions.

Company Summary

Metropolitan Transportation Authority (MTA): A public authority responsible for public transportation in the New York metropolitan area.
Standard & Poor’s Global Ratings: A leading provider of independent credit ratings, research, and data.