Credit Ratings Update Page Two
The action by S&P Global Ratings last month follows a similar ratings affirmation and outlook change by Moody’s in April 2024. Moody’s affirmed the double-A-two (Aa2) rating and changed the outlook to Negative from Stable. The Negative outlook was attributed to uncertainties associated with the Key Bridge replacement project and declining financial metrics for liquidity, debt service coverage, and leverage that are associated with the remaining capital program projects. Declining financial metrics could exert pressure on the credit profile if toll revenues do not keep pace with growing debt service requirements through traffic growth or toll rate increases. Moody’s issued a follow-up report last week, maintaining the Negative ratings outlook. While the 100% federal funding commitment for the Key Bridge is recognized as a credit positive in the recent report, Moody’s restated the same credit concerns from 2024. ATTACHMENTS • S&P Global Ratings Report • Moody’s Ratings Report
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