Cynthia D. Penny-Ardinger Jeffrey S. Rosen Samuel D. Snead, MCP, MA John F. von Paris
MEMORANDUM
TO:
MDTA Board
FROM:
Deputy Director Finance Allen Garman Credit Ratings Update – S&P
SUBJECT:
DATE:
February 26, 2026
PURPOSE OF MEMORANDUM In accordance with the Board Operating Policy requirement, management provides periodic updates on credit ratings, including the recent affirmation by S&P. This informational item follows the update provided to the board in January on earlier actions by Moody’s and Fitch to affirm the MDTA’s ratings. SUMMARY In 2025, S&P affirmed the MDTA’s rating 1 of AA- (double-A-minus) and revised the credit outlook to Negative from Stable. More recently on February 9, 2026, S&P again affirmed the rating and maintained the Negative outlook, citing federal funding uncertainty and the increasing debt burden that could weaken financial metrics. S&P may remove the Negative outlook with reduced federal funding and financing uncertainty, as well as actions to maintain debt service coverage in line with peers through adjustments to toll rates. As discussed in January with the Board, both Moody’s and Fitch have affirmed the MDTA’s double-A ratings in recent months. Moody’s continued with a Negative outlook, while Fitch maintains a Stable outlook.
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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