MEMORANDUM
TO:
MDTA Board
FROM:
Deputy Director Finance Allen W. Garman
SUBJECT:
Credit Ratings Update
DATE:
May 29, 2025
PURPOSE OF MEMORANDUM Provide an update on a recent credit ratings report published by S&P that affirmed the MDTA’s double-A-minus (AA-) rating but revised the outlook to Negative from Stable. KEY POINTS S&P affirmed the MDTA’s double-A-minus (AA-) credit rating and revised the outlook to Negative from Stable. S&P attributed the outlook change to potentially negative revenue trends and large capital needs resulting from bridge reconstruction that could weaken the authority's creditworthiness. MDTA Credit Ratings 1 S&P AA- Negative Moody’s Aa2 Negative Fitch AA Stable SUMMARY S&P explained that the outlook revision to negative reflects the potential for ratings downgrade within the next two years if potential project cost escalations and uncertain timing of future federal reimbursements for the Key Bridge replacement project weaken the MDTA’s ability to sustain financial metrics at levels comparable with peer toll agencies.
1 Numerical- or plus/minus-modifier to a ratings category, e.g. Moody’s ratings of Aa1, Aa2, and Aa3 denote levels of strength within the double-A ratings category (Fitch and S&P scale AA+, AA, AA-).
2310 Broening Highway • Baltimore, MD 21224 • mdta@mdta.maryland.gov • 410.537.1000 • 711 (MD Relay) • mdta.maryland.gov • DriveEzMD.com
Made with FlippingBook - professional solution for displaying marketing and sales documents online