KBRA assigns a long-term rating of AA- to the Triborough Bridge and Tunnel Authority ("TBTA") Subordinate Revenue Bond Anticipation Notes, Series 2025A. The Outlook is Stable. The long-term rating on the three-year notes reflects the TBTA’s role as one of the nation’s largest toll systems and a provider of highly essential transportation infrastructure to the regional New York City economy. Generally low demand volatility, limited competition, and the TBTA’s full toll setting autonomy, bolstered by the State’s non-impairment covenant under the TBTA Act, further underpin the rating.

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

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 recently implemented Congestion Pricing Program on traffic volumes and toll revenues at TBTA facilities that connect motorists to New York City’s 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 which, together with planned toll increases, results in a substantial and sustained increase in net revenues and in General Revenue (Senior) and Combined debt service coverage.

For Downgrade

• A downgrade of the long-term TBTA General Revenue Bond and Subordinate Revenue Bond rating during the pendency of the Series 2025A BANs.
• A trend of significant decline in traffic volume, increase in operating expenses, and/or higher than forecast leverage that results in a prolonged decline in General Revenue (Senior) and Combined debt service coverage.

To access ratings 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.

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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1007760

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