Credit Ratings Update Page Two
MDTA Credit Ratings 1 Moody’s
Aa2 Negative
Fitch S&P
AA
Stable
AA- Negative
The rating agencies cited the following credit strengths. • Strong financial profile supported by authority's financial policies and proven track record of conservative budgeting practices. • Willingness to maintain strong financial metrics by increasing toll rates or making other adjustments to preserve its financial position. • Long history of strong demand for the multiple, essential, and established transportation facilities in a well-developed, affluent, and slowly growing service area. Credit ratings published by Nationally Recognized Statistical Rating Organizations (NRSROs) such as Fitch, Moody’s, and S&P serve to inform exiting bond holders and prospective creditors through the assigned ratings level and written reports detailing an issuer’s creditworthiness. From a return on investment perspective, the annual cost of maintaining a credit rating should be fully offset by lower financing costs at the time of each new issue. During the annual ratings surveillance process, the MDTA provides detailed traffic and revenue forecasts, as well as operating and capital costs projections included in the six-year financial forecast. The credit ratings affirmations demonstrate confidence in the MDTA’s financial strength, with foundations in board policies and the Trust Agreement legal covenants. Within Moody’s Toll Sector universe of more than 50 rated credits, the MDTA remains among the five highest rated agencies that are solely toll supported.
1 Ratings categories below triple-A have three notches ranked from strongest to weakest within the category. For example, Moody’s utilizes numerical modifiers to denote strength within the double-A category (Aa1, Aa2, Aa3), while S&P and Fitch utilize plus/minus modifiers (AA+, AA, AA-).
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