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Rail News Home Passenger Rail

8/14/2025



Rail News: Passenger Rail

MTA: Improved finances result in S&P rating boost


The agency's S&P rating improved in part because of the preliminary success of the MTA's congestion relief tolling program and increased fare-box revenue.
Photo – Metropolitan Transportation Authority

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The Metropolitan Transportation Authority (MTA) on Aug. 12 received an upgraded credit rating from Standard & Poor’s Global Ratings, which improved its transportation revenue bonds rating from “A-” to “A” with a “stable” rating outlook. 

The rating improved in part because of the preliminary success of the authority's congestion relief tolling program and increased fare-box revenue resulting from ridership growth and a reduction in fare evasions, MTA officials said in a press release.

“To further support the MTA’s financial profile, we’ll continue to focus on operating budget savings while delivering reliable service," said MTA Chief Financial Officer Jai Patel.

S&P took the rating action based on six months of the tolling program with net revenue 8% favorable to budget, along with the state’s new funding source to support the MTA’s 2025-2029 capital plan by increasing the maximum rate of the payroll mobility tax projected to generate an additional $1.4 billion in recurring annual revenue.

Also taken into consideration is the MTA’s balanced budget through 2026 with baseline increases in farebox revenue, toll revenue, dedicated taxes and state and local subsidies, which enables the MTA to maintain a sufficiently strong financial profile, authority officials said.

Moreover, the MTA is also managing expenses by achieving operating efficiencies and reducing outyear deficits, which contributed to the upgrade of the credit rating, they added.



Contact Progressive Railroading editorial staff.

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