KBRA Assigns AA+ Rating, Stable Outlook to TBTA Payroll Mobility Tax Senior Lien Green Bonds, Series 2024A (Climate Bond Certified)
KBRA assigns a long-term rating of AA+ with a Stable Outlook to the Triborough Bridge and Tunnel Authority (MTA Bridges and Tunnels) Payroll Mobility Tax Senior Lien Green Bonds, Series 2024A (Climate Bond Certified). Concurrently, KBRA affirms the long-term rating of AA+ with a Stable Outlook on TBTA's outstanding Payroll Mobility Tax Senior Lien Bonds.
The short-term rating of K1+ on TBTA's outstanding Payroll Mobility Tax Bond Anticipation Notes, is also affirmed.
Key Credit Considerations
The rating was assigned because of the following key credit considerations:
Credit Positives
- Pledged Revenues provide ample coverage of pro-forma PMT MADS, which occurs in CY 2040.
- Mobility Tax and ATA Receipts are derived from a broad, diverse, and resilient employment base.
- Senior lien PMT obligations benefit from a 2.25x ABT based on historical pledged revenues and pro-forma MADS. The conservative ABT insulates the Bonds against overleveraging of the PMT lien.
Credit Challenges
- Mobility Tax Receipts are subject to economic volatility.
- ATA Receipts have been flat since 2018. In KBRA's view, revenue growth from the surcharge on metered taxicab pickups, a component of ATA receipts, is likely to be limited due to competition from ride-share companies.
Rating Sensitivities
For Upgrade
- An increase in current Payroll Mobility Tax rates or on the number of employers subject thereto that allows MADS coverage from Pledged Revenues to remain comfortably above the 2.25x ABT even as additional PMT obligations are issued.
For Downgrade
- A sustained economic downturn that results in a significant reduction in Pledged Revenues and debt service coverage.
To access rating and relevant documents, click here.
Methodologies
Public Finance: U.S. Special Tax Revenue Bond Rating Methodology
ESG Global Rating Methodology
Disclosures
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Only those ratings on securities issued by this Issuer that also are denoted on the Security Ratings tab for this Issuer on KBRA.com as "endorsed" by Kroll Bond Rating Agency Europe Limited into the European Union and/or by Kroll Bond Rating Agency UK Limited into the UK are covered by the disclosures set forth in this press release and the corresponding Information Disclosure Form. No other ratings on issuances by this Issuer have been endorsed into the European Union or the UK, and the disclosures set forth herein and in the corresponding Information Disclosure Form are inapplicable to those ratings and may not be used for regulatory purposes by European Union or UK investors in these securities.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.
Doc ID: 1002982
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