Printer Friendly

MOODY'S CONFIRMS 'Baa' RATING ON THE METROPOLITAN TRANSPORTATION AUTHORITY TRANSIT FACILITIES REVENUE BONDS

 NEW YORK, Feb. 16 /PRNewswire/ -- Effective today, Moody's Investors Service has confirmed the 'Baa' rating on the Metropolitan Transportation Authority transit facilities revenue bonds. The rating was reviewed in conjunction with the planned sale today of $423,410,000 of Transit Facilities Revenue Bonds, Series M.
 In confirming the rating, Moody's stated, "The regional recession continues to constrain the major revenue sources of the New York City Transit Authority (NYCTA), the MTA's transit subsidiary. These sources include farebox receipts, which yield approximately half of NYCTA's revenues, and subsidies from state and city general appropriations and dedicated taxes, which provide most of the remainder. Declining ridership, reduced state and city general appropriation subsidies, and the vulnerability of dedicated taxes to weakened economic conditions have together contributed to a persistent fiscal imbalance, despite the authority's successful actions to reduce operating costs. The authority is required by statute and bond covenants to maintain balanced, cash- basis operations. Rather than meet this requirement entirely through fare increases, the authority has relied on a series of one-shot measures, including substantial debt refinancings. Officials anticipate that at $266 million estimated gap in the 1993 budget will be closed through a combination of actions, including the reallocation of subsidies from commuter railroads, a share of revenues from the petroleum business tax, and increased appropriations form New York City, averting the need for a mid-year fare increase.
 The rating reflects the essentiality of the system balanced against the ongoing fiscal pressures which stem, in part, from reliance on state and city subsidies and the political difficulty of increasing fares. Uncertainty surrounding the source of funding for the necessary system improvements contained in the proposed 1993-96 capital program is an additional concern.
 -0- 2/16/93
 /CONTACT: Brad Gewehr, senior analyst of Moody's, 212-553-4789/


CO: Metropolitan Transportation Authority ST: New York IN: FIN SU: RTG

AH-TS -- NY081 -- 6915 02/16/93 12:12 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 16, 1993
Words:315
Previous Article:A NEW GENERATION: IBM BOOSTS AS/400 POWER UP TO 60 PERCENT, ENHANCES OPENNESS, CLIENT/SERVER CAPABILITIES
Next Article:SPECTRUM INFORMATION TECHNOLOGIES ANNOUNCES SECURITIES INDUSTRY RESEARCH CHAIRMAN ADDRESSES ANALYSTS AND SHAREHOLDERS ON COMPANY/INDUSTRY GROWTH
Topics:


Related Articles
MOODY'S RAISES RATING ON REGIONAL TRANSPORTATION DISTRICT, COLORADO, SALES TAX REVENUE BONDS TO 'A 1' FROM 'A'
MOODY'S LOWERS STATE OF NEW YORK APPROPRIATION-BACKED DEBT RATING TO Baa1 FROM A; ALSO PLACES GENERAL OBLIGATIONS UNDER REVIEW
MOODY'S ASSIGNS 'CON. (A)' RATING TO INDIANA TRANSPORTATION FINANCE AUTHORITY REVENUE BONDS
MOODY'S COMPLETES REVIEW OF HOSPITAL RATINGS IN PENNSYLVANIA 1 UPGRADE, 8 DOWNGRADES
MOODY'S LOWERS RATING ON NEW YORK MTA TRANSIT FACILITIES; NEW YORK CITY TRANSIT AUTHORITY REVENUE BONDS TO 'Baa' FROM 'Baa1'
MOODY'S REVIEWS HOSPITAL RATINGS IN MICHIGAN
MOODY'S RAISES RATINGS RELATED TO COMMONWEALTH OF MASSACHUSETTS GENERAL OBLIGATIONS
MOODY'S REVIEWS HOSPITAL RATINGS IN WASHINGTON STATE ONE UPGRADE, NINE CONFIRMATIONS RESULT
MOODY'S CONFIRMS 'Baa1' RATING ON SUFFOLK COUNTY, N.Y. GENERAL OBLIGATION BONDS
MOODY'S DOWNGRADES FLINT, MICH., GENERAL OBLIGATION UNLIMITED TAX BOND RATING FROM 'Baa1' TO 'Baa'

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters