S&P Global Ratings assigned its 'A+' long-term rating to the Triborough Bridge and Tunnel Authority (TBTA), N.Y.'s proposed $1.3 billion (Metropolitan Transportation Authority [MTA] Bridges and Tunnels) real estate transfer tax revenue bonds (TBTA Capital Lockbox—Real Estate Transfer Tax), series 2025A. The outlook is stable.
"The rating reflects our view that coverage of debt service will likely be at or near levels we view as strong even during economic downturns or disruptions to real estate market transactions, despite high volatility of the pledged real estate transfer tax revenues," said S&P Global Ratings credit analyst Thomas Zemetis.
The stable outlook reflects our view of the city's very strong economic fundamentals on which the real estate transfer taxes are collected and strong bond provisions that are likely to support credit stability due to our expectations for potential cyclical downturns or real estate market disruptions that could reduce pledged revenue and debt service coverage. In addition, we do not expect the TBTA to issue additional debt over the outlook period given the effective cap of annual debt service under the bond resolution, which further lends to credit stability.
Pledged revenues derived from real estate transfer taxes (RETT) levied on the conveyance of certain residential and non-residential real property in New York City and deposited into the central business district (CBD) tolling capital lockbox fund to secure the series 2025A bonds.
Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Rating Criteria at www.spglobal.com/ratings for further information. Complete ratings information is available to RatingsDirect subscribers at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.spglobal.com/ratings.
