Standard & Poor's Ratings Services said it raised its long-term rating to A-plus from A on Metropolitan Transportation Authority (MTA), N.Y.'s transportation revenue bonds outstanding.
The raised rating reflects the application of Standard & Poor's new rating criteria published Dec. 18, 2013. Also, in accordance with the revised criteria, the agency assigned MTA a stand-alone credit profile (SACP) of a-plus and an issuer credit rating of A-plus. The outlook is positive.
At the same time, Standard & Poor's assigned its A-plus long-term rating to the MTA's $400 million series 2014A TRBs.
"The TRBs are being issued to finance transit and commuter projects and to refinance certain outstanding bonds issued to finance transit and commuter projects," said Standard & Poor's credit analyst Joseph Pezzimenti.
In addition, Standard & Poor's affirmed its AAA/A-1 rating on the authority's series 2005D TRBs, reflecting the application of its joint criteria with low correlation. It bases the ratings on the A-plus SPUR on the bonds and the long and short-term ratings on the bank providing the letter of credit that supports the bonds.
The positive outlook reflects the view that there is at least a one-in-three chance that it could raise the rating on the MTA within the two-year outlook period if it experiences modest year-over-year increases in demand while maintaining a strong financial risk profile, and assuming MTA does not experience significant weakening in its economic fundamentals. It will likely revise the outlook back to stable if demand is lower than forecast.
