S&P Global: Triborough Bridge and Tunnel Authority, NY Series 2025A revenue bonds assigned ‘A+’ rating; outlook stable

S&P Global Ratings assigned its 'A+' long-term rating to the Triborough Bridge and Tunnel Authority (TBTA), N.Y.'s proposed $1.3 billion (Metropolitan Transportation Authority [MTA] Bridges and Tunnels) real estate transfer tax revenue bonds (TBTA Capital Lockbox—Real Estate Transfer Tax), series 2025A. The outlook is stable.

"The rating reflects our view that coverage of debt service will likely be at or near levels we view as strong even during economic downturns or disruptions to real estate market transactions, despite high volatility of the pledged real estate transfer tax revenues," said S&P Global Ratings credit analyst Thomas Zemetis.

"Our rating also incorporates TBTA's expectations to issue additional parity debt up to the $150 million annual debt service limit over the outlook horizon to finance the MTA's 2020-2024 capital program and successor programs," he added.

The stable outlook reflects our view of the city's very strong economic fundamentals on which the real estate transfer taxes are collected and strong bond provisions that are likely to support credit stability due to our expectations for potential cyclical downturns or real estate market disruptions that could reduce pledged revenue and debt service coverage. In addition, we do not expect the TBTA to issue additional debt over the outlook period given the effective cap of annual debt service under the bond resolution, which further lends to credit stability.

Pledged revenues derived from real estate transfer taxes (RETT) levied on the conveyance of certain residential and non-residential real property in New York City and deposited into the central business district (CBD) tolling capital lockbox fund to secure the series 2025A bonds.

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