Maryland Transportation Authority; Toll Roads Bridges
Credit Snapshot
• Organization description: Maryland Transportation Authority is an independent state agency responsible for financing, constructing, operating, and maintaining eight transportation facilities, currently consisting of two toll roads, two tunnels, and four bridges in Maryland. The authority board consists of nine members, the chairman of which is the state secretary of transportation; the other eight members are appointed by the governor of Maryland. • Capital needs: MDTA's capital program totals $5.1 billion through fiscal year 2030, although we note that the authority typically spends 75%-80% of annual projections within the six-year CIP. • Bond covenants: MDTA is required to maintain toll rates on pledged assets such that in each bond year, net revenue will exceed 1.2x annual debt service requirements and 100% of the amount set forth in the annual budget to be deposited to the credit of the Maintenance and Operations Reserve Account. The authority is subject to a statutory bond cap, with authorization required to exceed $4 billion of bonds outstanding at any time. We note the statutory bond cap was raised from $3.0 billion in 2024. • Financial targets: To provide itself with greater financial flexibility, MDTA targets a debt service coverage ratio (DSCR) of at least 2.0x. Management also has a formal liquidity policy of maintaining no less than $400 million of unrestricted cash and investments.
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