Standard & Poor's has revised its outlook on the New York State Thruway Authority's general revenue bonds to negative from stable based on possible lower debt service coverage.
The agency affirmed its A-plus rating ahead of the sale of $1.15 billion of general revenue bonds expected to price in the next two weeks.
Coverage could decline if the authority does not obtain formal board approval in September to increase commercial vehicle tolls by 45%, though its liquidity position is considered to be adequate, analysts said in a report.
"Uncertainty related to NYSTA's plan of finance and long-term tolling strategy related to the replacement of the Tappan Zee Bridge and ongoing capital needs also contributed to the outlook revision," the report said.
A recent traffic engineer's report prepared in connection with the proposed commercial toll increases includes financial projections for 2012 to 2016 based on the existing toll schedule and on a toll rate increased 45% in September for large commercial trucks.
Projected debt service coverage based on the existing toll schedule is 1.24 times in 2013.
The lower coverage levels are primarily attributable to escalating debt service requirements and modest growth in traffic.
Projected coverage based on increasing tolls 45% would be 1.61 times in 2013.
Neither of the projections included financing for the Tappan Zee bridge.
The authority's chairman said in a statement that their financial advisor is "actively engaged in development of a comprehensive plan to finance the new bridge."
