NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has assigned a long-term rating of AA with a stable outlook on the Triborough Bridge and Tunnel Authority’s (TBTA or Authority) $63.65 million senior lien General Revenue Bonds, Subseries 2008B-2 and the $38.7 million senior lien General Revenue Variable Rate Refunding Bonds Subseries 2005B-4c, and affirms the long-term rating of AA with a stable outlook on the TBTA’s outstanding senior lien General Revenue Bonds.
KBRA also affirms the long-term rating of AA- with a stable outlook on the TBTA’s outstanding subordinate lien General Revenue Bonds. KBRA has also affirmed the short term rating of K1+ to the Subordinate Revenue Variable Rate Refunding Bonds, Subseries 2000ABCD-1 maturing on January 1, 2015; Subseries 2000ABCD-2 maturing on January 1, 2016 and Subseries 2000ABCD-3 maturing on January 1, 2017, based on KBRA’s short term rating scale.
The General Revenue Variable Rate Refunding Bonds, Subseries 2008B-2 and Subseries 2005B-4c are secured by a senior lien pledge on TBTA net revenues, after TBTA operating expenses as defined in the TBTA Senior Resolution.
Following the remarketing of the Subseries 2008B-2 and Subseries 2005B-4c Bonds, TBTA will have a total of approximately $7.0 billion in senior lien General Revenue Bonds and approximately $1.8 billion in Subordinate Revenue Bonds outstanding. Based on the MTA Bridges and Tunnels Mid-year Forecast in the July 2014 Financial Plan for the fiscal year ending December 31, 2014, net revenues available for debt service provides 2.51X of debt service on outstanding senior lien bonds and 2.00X coverage of combined debt service on outstanding senior and subordinate lien bonds, which KBRA considers to be very strong. Overall debt amortization is level through 2032 and then drops off following the retirement of subordinate bonds. Debt service figures are net of approximately $8.4 million in both 2014 and 2015 in Build America Bonds interest credit payments expected to be received from the Federal government. In 2014 and 2015, these interest credit payments have been adjusted to reflect the impact of the federal sequestration.
The TBTA’s July 2014 Mid-year Forecast includes coverage at slightly higher levels than projected in the MTA Projected Budget in November 2013. As of July 2014, year to date toll revenues have increased 2.2%, when compared to the same period in 2013. The TBTA estimates that total traffic volume from January to June of 2014 is comparable to traffic volume in the first six months of 2013, despite declines in the first quarter due to relatively harsh weather conditions. Based on the 2015 Preliminary Budget and the July Financial Plan 2015-2018, coverage on outstanding debt service on senior lien bonds is projected to be 2.40X and coverage of combined senior and subordinate debt service is projected to be 1.87X for the fiscal year ending December 31, 2015, which KBRA considers to be very strong.
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
