KBRA Assigns AA Rating to Washington Metropolitan Area Transit Authority (DC) Second Lien Dedicated Revenue Bonds, Series 2024A; Outlook is Stable
June 20 2024 - 5:56PM
Business Wire
KBRA assigns a long-term rating of AA to the Washington
Metropolitan Area Transit Authority Second Lien Dedicated Revenue
Bonds, Series 2024A (Sustainability – Climate Transition Bonds).
KBRA additionally affirms the long-term rating of AA+ for the
Authority's senior lien Dedicated Revenue Bonds, and the AA
long-term rating for Second Lien Dedicated Revenue Bonds,
outstanding. The rating Outlook is Stable.
Key Credit Considerations
The rating was assigned because of the following key credit
considerations:
Credit Positives
- The jurisdictions have an uninterrupted 48-year history of
payment of their annual commitments.
- Strong credit characteristics of signatory jurisdictions
supports appropriation funding mechanism.
- Essentiality of mass transit to metropolitan Washington D.C.
area and established history of operating and capital support by
these jurisdictions.
- Substantial coverage of debt service requirements.
Credit Challenges
- Dedicated revenue sources may be adversely affected by economic
cycles and exogenous events.
- Signatories are allowed to proportionally reduce their
dedicated capital funding contribution if another does not pay the
full amount of their obligations.
Rating Sensitivities
For Upgrade
- Improved credit position of signatory jurisdictions.
For Downgrade
- Weakened credit position of one or more of the
signatories.
- Failure of one or more signatories to make its committed
appropriation in full.
To access rating and relevant documents, click here.
Methodologies
- Public Finance: U.S. State Annual Appropriation Obligation
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: 1004837
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Analytical Contacts
Michael Taylor, Senior Director (Lead Analyst) +1 646-731-3357
michael.taylor@kbra.com
Harvey Zachem, Managing Director +1 646-731-2385
harvey.zachem@kbra.com
Douglas Kilcommons, Managing Director (Rating Committee Chair)
+1 646-731-3341 douglas.kilcommons@kbra.com
Business Development Contacts
William Baneky, Managing Director +1 646-731-2409
william.baneky@kbra.com
James Kissane, Senior Director +1 646-731-2380
james.kissane@kbra.com