The Metropolitan Transportation Authority (MTA) today received a higher credit rating from Standard & Poor’s Global Ratings for its improved tolling program. The MTA’s rating increased from A- to A.
S&P Global gives out credit ratings along with insight and advice for different companies. These ratings are given to assess a company or program’s financial health along with assessing credit risk, creditworthiness and credit quality on a scale of letters from AAA to D.
S&P’s rating change for the MTA comes as a result of the Congestion Relief Zone tolling program, a new funding source, and an increase in revenue from fareboxes, tolls, dedicated taxes and state and local subsidies.
Along with this, the MTA has reduced its outyear deficits by $198 million over the last year. The July Financial Plan reaffirmed a previous prediction of the MTA saving $500 million in cost savings since the start of the year.
An increase in paid ridership was also cited in the report, saying it was due to the reduction of fare evasion. This trend is expected to continue based on more employees returning to office and contributing to the increase in revenue.
“S&P’s upgrade demonstrates continued growth in confidence in the MTA’s financial stability while recognizing the early success of the Congestion Relief tolling program, ongoing ridership recovery and dedicated State support to maintain a strong financial position,” said Jai Patel, Chief Financial Officer of the MTA. “To further support the MTA’s financial profile, we’ll continue to focus on operating budget savings while delivering reliable service.”