Moody's Affirms BATA’s $5.3B of Bonds at Aa3

California’s Bay Area Toll Authority kept its Aa3 rating from Moody’s Investors Service on $5.3 billion of senior bonds ahead of a resale of variable-rate debt.

Moody’s said the rating and stable outlook is based partly on the ability of the authority — which operates seven bridges in the San Francisco Bay Area — to raise tolls to meet debt service minimums in the future.

“Maintenance of solid financial performance and operating resilience is critical given the authority’s high levels of debt,” the rating agency said in the report released Wednesday.

BATA has $7.7 billion of outstanding bonds, including $2.39 billion of subordinate debt.

BATA, which operates under the regional Metropolitan Transportation Commission, is exposed to potential construction risks as it continues its seismic retrofit of its bridges.

The biggest piece of the puzzle is its San Francisco Bay Bridge project.

A replacement for the bridge’s eastern span is expected to open next year, 24 years after the Loma Prieta earthquake, which spurred the earthquake refit project.

Moody’s said traffic on the bridges has begun to increase following several years of declines during the recession, which BATA offset by raising tolls.

The MTC has attracted criticism this year for using $167 million in BATA toll money to help purchase and renovate a new headquarters in San Francisco.

State Sen. Mark DeSaulnier, D-Concord, lead a charge in the Legislature to stop the purchase of the building and has been working to bring the commission under tougher scrutiny.

DeSaulnier, as chairman of the Senate Transportation and Housing Committee, authored legislation that would create a regionally elected board to oversee the operations of the MTC.

The board is currently comprised of political appointees. DeSaulnier’s bill was not approved.

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