Infrastructure and Project Finance
Moody's Ratings
LEGAL SECURITY The authority's outstanding revenue bonds are secured by a pledge of revenues from the Transportation Facility Projects and from the General Account Project, which is subject to reallocation at the option of the MDTA. The authority's rate covenant requires net revenues of the Transportation Facility Projects to be at least the sum of 1.2x annual debt service and 100% of the amount required to be deposited in the maintenance and operations reserve account. The additional bonds test requires the rate covenant to be met on a 5-year prospective basis. The outstanding municipal bonds are also secured by a surety policy funded debt service reserve subaccounts sized at the lesser of maximum annual debt service, 125% of average annual debt service or 10% of the proceeds of the principal amount of the bonds funded with surety policies. Series 2022 TIFIA Loan does not have a debt service reserve subaccount at this point. ESG considerations Maryland Trans. Auth. - Trans. Facilities' ESG credit impact score is CIS-1
Exhibit 5 ESG credit impact score
Source: Moody's Ratings
Maryland Transportation Authority – Transportation Facilities (MDTA)’s CIS-1 indicates that ESG considerations have a positive impact on the rating. The score reflects MDTA’s positive exposure to governance risk and moderately negative exposure to environmental and social risks.
Exhibit 6 ESG issuer profile scores
Source: Moody's Ratings
Environmental MDTA’s E-3 issuer profile score reflects its negative exposure to physical climate risk. As a system with several tunnels and bridges, MDTA faces physical climate risk from its location with exposure to extreme weather events, such as hurricanes. The increasing use of electric or hybrid vehicles still require the use of the roadways, limiting exposure to carbon transition risks impacts on traffic and revenue. While roadway materials are carbon intensive (i.e., concrete and asphalt), wide use of sustainable alternatives have yet to become widely and affordably available and there has yet to be a rise in political or social pressure to decarbonize construction materials to date.
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22 May 2025
Maryland Trans. Auth. - Trans. Facilities: Update to credit analysis
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