backed by non-recourse sources external to the MDTA. The MDTA’s $2.1 billion of toll revenue bonds remain below the statutory cap of $4.0 billion and the MDTA maintains strong rate covenant coverage of 2.62 times versus a 1.00 requirement. • The MDTA maintains credit ratings of AA and Aa2 from Fitch Ratings and Moody’s Investors Service, respectively. In 2024, the MDTA refinanced its Series 2009B and 2010B bonds with $622.8 million of Series 2024 bonds for economic savings. Risk reduction associated with the federal interest subsidy cuts and interest cost savings were realized through the refinancing. The refinancing achieved gross cash flow savings of $21 million through 2043, approximately $1.1 million annually or $15 million on a Net Present Value basis. • As a result of significant infrastructure investment, capital assets, net of accumulated depreciation, increased by $168.2 million, or 2.3%, from 2023. The largest portion of the increase, $150.5 million, is attributed to the I-95 Express Toll Lanes Northbound Extension Project. The remaining portion is mostly attributed to system preservation and restoration of existing facilities. • During the fiscal year ended June 30, 2024, the main spans and three approach spans of the Francis Scott Key Bridge (Key Bridge) collapsed after a container ship struck one of the Key Bridge piers. Following the collapse, the MDTA received insurance proceeds of $350 million, of which $25 million was for debris cleanup. The MDTA has estimated the total cost of debris clean up and salvage to be approximately $75 million and the impairment of the Key Bridge to be approximately $45 million. The MDTA has obtained Federal grant revenue to offset a portion of the federally eligible clean up and salvage costs.
34 | Maryland Transportation Authority | Management’s Discussion And Analysis
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