Fitch revises Port Authority of NY & NJ outlook to positive; rates senior debt at ‘AA-’

Fitch Ratings has assigned a 'AA-' rating to Port Authority of New York and New Jersey's (PANYNJ) proposed $300 million Consolidated Revenue Bonds, 251st Series. The Rating Outlook is Positive.

Fitch has affirmed the following outstanding senior-lien parity obligations at 'AA-':

Parity consolidated bonds;

New York Liberty Development Corp.'s (NY-LDC) Liberty Revenue Refunding Bonds, Series 1WTC-2021.

Fitch has also affirmed the following subordinate obligations at 'A':

4 World Trade Center (4WTC) Project Bonds, Series 2021 issued by NY-LDC;

Payment obligations for 4WTC/Goethals Bridge projects.

The Rating Outlook on all outstanding obligations is revised to Positive from Stable.

The Positive Outlook reflects clarity on PANYNJ's new 10-year capital improvement plan (CIP) and plan of finance leading to rating case senior and total year-five leverage below 7x and 8x, respectively. Favorable CIP progression with visibility on remaining debt plans that sustain current rating case metrics would likely lead to a rating upgrade on both liens.