Infrastructure and Project Finance
Moody's Ratings
Key indicators
Exhibit 1 Key Indicators Maryland Transportation Authority
2020
2021
2022
2023
2024
Total Transactions ('000)
137,864
132,278
152,204
162,833
165,312
Total Transactions Annual Growth (%)
-16.6
-4.1
0.2
-0.5
1.5
Debt Outstanding ($'000)
1,910,419
2,135,975
2,101,573
2,263,932
2,110,062
Adjusted Debt to Operating Revenues (x)
4.07
4.83
3.78
3.49
3.12
Days Cash on Hand
782
532
576
865
743
Total Debt Service Coverage By Net Revenues (x)
4.06
4.98
3.87
3.03
3.42
Source: Moody's Ratings
Profile The authority is an independent agency with autonomous rate-setting authority, however the Secretary of Maryland Department of Transportation (MDOT), also serves as chairman of the authority's 8-member board which is appointed by the governor (and confirmed by the Senate). The two agencies work together to address state-wide transportation needs and this high level of coordination benefits the authority as it undertakes capital projects. The authority owns and operates 8 facilities, of which revenues from 7 are deemed Transportation Facilities Projects: the John F. Kennedy Memorial Highway; the Fort McHenry Tunnel; the Baltimore Harbor Tunnel; the Francis Scott Key Bridge (that collapsed in March 2024 and will be replaced); the Governor Harry W. Nice Memorial Bridge (formerly the Potomac River Bridge); the Chesapeake Bay Bridge; and the ICC. The last facility is the Thomas J. Hatem Memorial Bridge (formerly the Susquehanna River Bridge), which the authority operates as a General Account Project. Detailed credit considerations Francis Scott Key Bridge Replacement Project On March 26, 2024, the Francis Scott Key Bridge collapsed after a container ship collided with a support column. While final costs and timing of the Key Bridge replacement project are still uncertain, the confirmation of 100% funding by the federal government is positive for MDTA. Final reconstruction costs are still unknown at this point, however we expect them to be substantial in part because of elevated construction costs driven by high inflation in recent years and a tight labor market, further impacted by tariff related uncertainties. Besides, there is uncertainty regarding the timing of the project given its complexity. Even with a complex project ahead given timing, design and size, we believe that MDTA will be successful in the implementation of this project given its strong track record of delivering construction projects. In October 2022, MDTA concluded the replacement of its Nice/ Middleton Bridge about three months ahead of schedule following a 30-month construction period at a $636 million cost. MDTA entered in a progressive design build agreement with Kiewit in August 2024 for phase 1 of the project which includes the project development, with pre-construction and design works which allow for the preparation for phase 2 request for proposal process. Phase 2 includes the project delivery and the final award of the fixed price contract is expected to be reached late summer of 2025. Preliminary estimates at the time of collapse included project completion by the end of calendar year 2028 and total costs of about $1.7 billion. The project will be funded with MDTA's insurance policy's proceeds and federal funds. MDTA will use the $60 million of FHWA emergency relief funds and proceeds from its $350 million in property and business interruption insurance that were received in 2024 to fund the replacement project prior to drawing additional federal funds. MDTA may also receive third-party insurance proceeds, including from the ship owner and manager that caused the crash. However we expect that any proceeds from these insurances would take a long time to be recovered (both ship owner and manager have filed claims seeking to limit their financial liability), so we do not consider them as available sources to fund the project in the short to medium term. If any of these funds are received, we expect they will be used to reimburse the federal government.
3
22 May 2025
Maryland Trans. Auth. - Trans. Facilities: Update to credit analysis
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