Fitch Ratings recently upgraded the Metropolitan Transportation Authority’s (MTA) revenue bonds rating from “A-” to “A” and its rating outlook from “negative” to “stable.”
Fitch rated revenue bonds at an AA- with a stable outlook prior to the COVID-19 pandemic. In October 2020, MTA’s rating reached a rating of A- with a negative outlook and stayed that way until this month.
New York Gov. Kathy Hochul provided MTA with a secured recurring revenue source in the state budget, and this prompted Fitch to make its update.
“The MTA would not be in this secure financial state without Gov. Hochul’s steadfast commitment to funding public transit in this year’s State budget,” MTA Chairman and CEO Janno Lieber said. “Wall Street is taking notice with continued growth in confidence in the MTA’s sustainable financial position.”
For the first time in recent history, MTA forecasts five years of consecutive balanced budgets. The forecasts are based on stronger ridership trends, toll and fare increases, and the additional tax revenue.
“We continue to execute on our historic five-year financial plan which demonstrates five consecutive years of balanced budgets,” MTA Chief Financial Officer Kevin said. “Fitch’s improved rating and outlook is another sign of confidence in the MTA’s ability to deliver.”
The MTA serves a 15.3 million people in a 5,000-square-mile travel area surrounding New York City, Long Island, southeastern New York State, and Connecticut.