KBRA assigns a long-term rating of AA to the Triborough Bridge and Tunnel Authority (TBTA) General Revenue Bonds, Series 2024A, consisting of General Revenue Bonds, Subseries 2024A-1 and General Revenue Refunding Bonds, Subseries 2024A-2.

Concurrently, KBRA affirms the AA rating on outstanding TBTA General Revenue Bonds, and affirms the AA- rating on TBTA Subordinate Revenue Bonds.

The Outlook on all bonds is Stable

Key Credit Considerations

The rating was assigned because of the following key credit considerations:

Credit Positives

• The TBTA Board has independent rate-setting authority and a proven track record of implementing required rate increases. Toll rates are established to generate operating surpluses used to subsidize the MTA’s mass transit system.
• TBTA bridges and tunnels are highly essential to the regional transportation network, providing vital links that support economic activity across the nation’s most heavily populated service area.
• Historical demand has been generally unaffected by biennial toll increases. Vehicular traffic has fully recovered from pandemic impacts.

Credit Challenges

• Uncertainties persist regarding the impact of the now indefinitely delayed Central Business District Tolling Program on traffic volume and toll revenues at TBTA facilities that connect motorists to the Central Business District.
• Traffic demand, while historically inelastic, may be impacted by further toll rate increases.
• There is no debt service reserve funding requirement.

Rating Sensitivities

For Upgrade

• Growth in traffic volume that, together with planned toll increases, results in a substantial and sustained increase in net revenues and debt service coverage.

For Downgrade

• Trend of significant decline in traffic volume, increase in operating expenses, and/or higher than forecast leverage that results in a prolonged decline in combined General Revenue and Subordinate Revenue debt service coverage.

To access rating and relevant documents, click here.

Methodologies

• Public Finance: U.S. Public Toll Roads, Bridges & Tunnels 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: 1005425

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