KBRA Assigns AA+ Rating, Stable Outlook to Triborough Bridge and Tunnel Authority Payroll Mobility Tax Senior Lien Green Bonds, Series 2024 (Climate Bond Certified)

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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