Correct: Fitch Rates PANY & NJ $400MM 135th Ser Consolidation Bds 'AA-'.Business Editors NEW YORK--(BUSINESS WIRE)--March 19, 2004 Correct: Fitch Rates PANY & NJ $400MM 135th Ser Consolidation Bds 'AA-' (In a press release issued earlier, the rating in the headline was incorrect. Please see amended release.) Fitch Ratings-New York-March 19, 2004: Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. assigns an 'AA-' rating to the Port Authority of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and New Jersey's (the Authority) $400 million 135th series consolidated bonds consolidated bond A single bond issue used to replace two or more outstanding issues. . The Rating Outlook is Stable. The bonds are expected to sell competitively on March 24, 2004. Interest on the 135th series is payable March 15 and Sept. 15, beginning on March 15, 2004, with final maturity occurring in 2039. Proceeds of the 135th series will be allocated to fund capital projects in connection with Authority facilities and/or applied to refund outstanding obligations. The bonds, which are secured by net Authority revenues, will be on parity with approximately $7.3 billion of outstanding consolidated bonds and $200 million of outstanding consolidated notes, which Fitch also affirms at 'AA-' and 'F1+', respectively. The stable rating outlook is supported by the Authority's strong financial performance and healthy liquidity. The 'AA-' rating reflects the Authority's expansive, well-managed, and diverse portfolio of transportation and commerce-related assets, which include the three metropolitan New York airports, an interstate transportation network (tunnels, bridges, and ferries), and area seaports This is a list of the world's seaports: Atlantic Ocean
Credit concerns include the PA's reliance upon airport operations for 61% of net operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. . Despite some indications of a recovery in that sector, the overall economic and financial profile of the U.S. passenger aviation industry remains weak. Additionally, the slowed economic recovery within metropolitan New York dampens demand for interstate travel and further accentuates dependence on airport revenues in the near term. Authority operations generated $1.6 billion in net revenue for the fiscal year ended Dec. 31, 2003, an increase of 17% from the prior year. Of that total, contributions from the Federal Emergency Management Agency The Federal Emergency Management Agency (FEMA) is the federal agency responsible for coordinating emergency planning, preparedness, risk reduction, response, and recovery. The agency works closely with state and local governments by funding emergency programs and providing technical (FEMA FEMA, n.pr See Federal Emergency Management Agency. ) and proceeds from the Authority's insurance policies (net of expenditures) contributed $664 million. Debt service coverage of Authority obligations fell to 1.62 times (x) from 2.94x in 2002, though 2003 debt service included the retirement of $500 million in notes issued in 2003 for FEMA reimbursed projects. Fitch estimates that debt service coverage without the note retirement would have been closer to 1.99x, a figure in line with the Authority's historical level of coverage. The Authority ended fiscal 2003 with impressive reserve balances of nearly $1.6 billion, representing approximately 19% outstanding debt. The Authority has budgeted $1.1 billion in net operating revenues for fiscal 2004, with pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma debt service coverage expected to be 1.86x. Budgeted 2004 net revenues are significantly lower than the $1.6 million realized in 2003 due to the exclusion of FEMA funds and insurance proceeds. Though the Authority may receive future operating grants from FEMA, that source of income should not be expected. The Authority continues to invest heavily in facilities, spending roughly $1.8 billion toward its capital improvement plan (CIP (1) (Common Isochronous Packet) The packet format used in time-based (real time) FireWire transmission. See FireWire, IEC 61883 and mLAN. (2) (Common Industrial P ) during fiscal 2003. For the 2004-2008 timeframe, the CIP is estimated at roughly $9 billion, and includes significant spending for the restoration of lower Manhattan Lower Manhattan is the southernmost part of the island of Manhattan, the main island and center of business and government of the City of New York. Lower Manhattan is generally defined as the area delineated on the north by Chambers Street, on the west by the Hudson River (North (26%), including WTC redevelopment and rebuilding, and aviation (24%), including airport access projects. Redevelopment of the WTC site and surrounding area remains the top priority for the Authority, and not surprisingly, represents the largest piece of the 2004-2008 CIP. Though the estimated WTC redevelopment costs are significant at $2.4 billion, funding is largely expected to come from federal sources ($1.7 billion through the Federal Transit Administration The Federal Transit Administration (FTA) is an agency within the United States Department of Transportation (DOT) that provides financial and technical assistance to local public transit systems. The FTA is one of eleven modal administrations within the DOT. ), with the remaining portion funded from other sources, including insurance proceeds. |
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