NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) affirms the long-term rating of AA with a stable outlook on the Triborough Bridge and Tunnel Authority’s (TBTA) General Revenue Bonds, in connection with the remarketing of $83.5 million in General Revenue Bonds, Subseries 2008B-1. KBRA also affirms the AA- rating with a stable outlook on TBTA’s outstanding Subordinate Revenue Bonds.
On November 15, 2013, MTA Bridges and Tunnels is effecting a mandatory tender and remarketing of its currently outstanding TBTA General Revenue Bonds, Subseries 2008B-1. The Subseries 2008B-1 will be converted from a Term Rate Mode to a Fixed Rate Mode under the TBTA General Resolution. The Subseries 2008B-1 Bonds were originally issued in March 2008 to finance transit and commuter projects and to refund outstanding debt.
Following the remarketing of the Subseries 2008B-1 Bonds, the TBTA will have a total of $6.8 billion in senior lien General Revenue Bonds and $1.8 billion in Subordinate Revenue bonds outstanding. Based on the MTA Bridges and Tunnels 2013 Mid-Year Forecast for the fiscal year ending December 31, 2013, net revenues available for debt service provides 2.65x of debt service on outstanding senior lien bonds and 2.05x coverage of combined debt service on outstanding senior and subordinate lien bonds, which KBRA considers to be very strong.
Overall debt amortization is level through 2032 and then drops off following the retirement of subordinate bonds. Debt service figures are net of approximately $9.0 million in Build America Bonds interest credit payments expected to be received from the Federal government. In 2013, these interest credit payments have been adjusted to reflect the impact of federal sequestration which is expected to reduce Build America Bond payments by 8.7% for the 2013 Federal fiscal year. This remarketing will not significantly change the debt service schedule of the outstanding TBTA General Revenue Bonds.
The rating is based on KBRA’s U.S. Public Toll Roads, Bridges, & Tunnels Rating Methodology, published on November 1, 2012.
Please use the following link to view KBRA’s full report on the TBTA published on December 6, 2012: