KBRA Assigns AA+ Rating, Stable Outlook to Triborough Bridge and Tunnel Authority Payroll Mobility Tax Senior Lien Green Bonds, Series 2024 (Climate Bond Certified)
2024年5月1日 - 4:27AM
ビジネスワイヤ(英語)
KBRA has assigned a long-term rating of AA+ to the Triborough
Bridge and Tunnel Authority's ("TBTA’s") Payroll Mobility Tax
("PMT") Senior Lien Green Bonds, Series 2024B (Climate Bond
Certified), consisting of Subseries 2024B-1, Subseries 2024B-2, and
Subseries 2024B-3 (Mandatory Tender Bonds). The Outlook is Stable.
Concurrently, KBRA affirms the AA+ rating and Stable outlook on
parity TBTA PMT Senior Lien Bonds and affirms the short-term
ratings of K1+ on TBTA PMT Bond Anticipation Notes and K1+ on MTA
PMT Bond Anticipation Notes.
The long-term rating reflects the strength of Pledged Revenues,
which include a first lien on Payroll Mobility Tax Receipts
(“Mobility Tax Receipts”) and MTA Aid Trust Account Receipts (“ATA
Receipts”) deposited to the Obligations Trust Estate and pledged
pursuant to the TBTA PMT Resolution.
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.
- A sustained economic downturn that results in significantly
reduced 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.
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: 1004101
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Analytical
Linda Vanderperre, Senior Director (Lead Analyst) +1
646-731-2482 linda.vanderperre@kbra.com
Michael Taylor, Senior Director +1 646-731-3357
michael.taylor@kbra.com
Karen Daly, Senior Managing Director (Rating Committee Chair) +1
646-731-2347 karen.daly@kbra.com
Business Development
William Baneky, Managing Director +1 646-731-2409
william.baneky@kbra.com
James Kissane, Senior Director +1 646-731-2380
james.kissane@kbra.com