Bonds from the Southern Pennsylvania Transportation Authority will not be affected by a workers’ strike that halted Philadelphia’s subway and bus service beginning early Tuesday morning.
The authority’s roughly $400 million of outstanding debt is paid with dedicated funds from Pennsylvania’s public transportation system fund, which includes taxes on car leases and rentals, tire fees, and a portion of the state’s sales tax, according to SEPTA’s assistant treasurer, Kurt Weidenhammer.
“Our bonds are secured by [public transportation system funding], which is still being collected and paid at the state level and goes directly to the trustee to pay the bondholders,” he said. “That will continue until the bonds are retired.”
The authority is rated AA by Standard and Poor’s, A by Fitch Ratings and Aa3 by Moody’s Investors Service.
SEPTA’s operating costs are paid with fare revenue. Spokeswoman Gerri Williams said the authority does not yet have an estimate of revenue lost due to the strike as many city commuters are using the system’s regional trains instead of subways and buses in Philadelphia. SEPTA provides mass transit in Bucks, Chester, Delaware, Montgomery, and Philadelphia counties.