Maryland Transportation Authority; Toll Roads Bridges
Credit Profile
Maryland Transportation Authority Long Term Rating
AA-/Negative
Outlook Revised
Credit Highlights
• S&P Global Ratings revised the outlook to negative from stable and affirmed its 'AA-' long-term rating and underlying rating (SPUR) on the Maryland Transportation Authority's (MDTA's) revenue bonds outstanding.
• The outlook revision to negative reflects our opinion that we believe there is at least a one-in-three chance we could lower the rating within the two-year outlook if potential project cost escalations and uncertain timing of future federal reimbursements will weaken the authority's ability to sustain financial metrics at levels comparable with those of peers as it finances the reconstruction of the Francis Scott Key Bridge and its $5.1 billion capital improvement program (CIP).
Rationale
Security Net revenue from the facilities designated Transportation Facilities Projects (TFPs) under the trust agreement secure the bonds. These TFPs currently include:
• The JFK Memorial Highway (Interstate 95 [I-95]);
• The Francis Scott Key Bridge (I-695);
• The Fort McHenry Tunnel (I-95);
• The William Preston Lane, Jr. Memorial Bridge (U.S. Route 50/301);
• The Baltimore Harbor Tunnel (I-895);
• The Governor Harry W. Nice Memorial Bridge (US 301); and
• The Intercounty Connector (Maryland Route 200).
Although bondholders are also entitled to a pledge against General Account Projects, these are subject to authority termination. The authority excludes the revenue and expenses associated with its Hatem Bridge General Account Project in its calculation of rate covenant coverage as defined in the trust agreement but does include pledged general account project revenues in its calculations of debt service coverage (DSC). We exclude these general account project revenues and expenses in our analysis.
A debt service reserve, funded to the lesser of maximum annual debt service, 125% of average annual debt service, or
APRIL 25, 2025 2
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