Fitch Ratings said it upgraded to AA-plus from AA the following San Francisco Bay Area Rapid Transit District (BART) sales tax revenue bonds: $728.9 million sales tax revenue bonds, series 2005A, 2006, 2006A, 2010, 2012A, and 2012B.
In addition, Fitch affirms its AA-plus rating on the following BART general obligation (GO) bonds: $408.3 million GO bonds, series 2005A and 2007B.
The rating outlook is stable.
The sales tax revenue bonds are secured by a first lien on 75% of the 1/2 cent San Francisco Bay Area Rapid Transit District (BART) sales and use tax (sales tax) levied in Alameda and Contra Costa counties, and the City and County of San Francisco (collectively, the BART counties). The general obligation bonds are secured by an unlimited ad valorem tax levied on all taxable property within the BART counties.
The upgrade of the sales tax revenue bonds to AA-plus reflects high maximum annual debt service (MADS) coverage of 3.78 times (x), the strong tax base and economic growth prospects supporting bond repayment, and management's commitment to maintain relatively low leverage levels by cash-funding capital improvements, including the vehicle replacement program.
