Moody’s Investors Service late Tuesday upgraded to A1 from A2 the Southeastern Pennsylvania Transportation Authority, affecting $327 million of debt. The outlook is stable.
The rating boost indicates the connection between the mass transit agency’s dedicated revenues and bondholders. Pennsylvania’s treasurer each month directs the authority’s pledged state revenue straight to SEPTA’s bond trustee. Once debt-service obligations are met, the remainder then goes towards the authority’s operations.