The Massachusetts Bay Transportation Authority, which operates Greater Boston's mass transit system, intends to sell $200 million of Series 2014 senior sales tax bonds next week.
The sale is scheduled for April 15 depending upon market conditions, according to a press officer for the state Department of Transportation, which has overseen the MBTA since a reorganization in 2009.
Proceeds will benefit capital improvements. Moody's Investors Service rates the bonds Aa2, while Standard & Poor's rates them AAA.
S&P cited as credit strengths the 1.73 times coverage of combined parity and prior-lien maximum annual debt service, and 2.06 times coverage by the fiscal 2015 commonwealth-guaranteed base revenue. It also cited the two-part revenue stream that pledges the greater amount of either a statewide 1% sales tax or the state-guaranteed base amount that goes up with an inflation-based formula.
MassDOT officials are proposing a 4% to 7% fare increase on MBTA service, which would take effect July 1 and generate $20 million to $24 million.
